If the General Level of Prices Is Higher Than Business

question 103

Multiple Choice

If the general level of prices is higher than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

• A) a recession
• B) output less than the economy's long-run potential
• C) a sharp reduction in imports
• D) an unemployment rate that is less than the economy's natural rate of unemployment

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Definitions:

Menus

Menus are lists of food and beverage options available for selection by customers in a restaurant, cafe, or other food service establishment.

Deliveries

The process of transporting goods from a seller to a destination specified by the buyer.

Vertical Conflict

A type of disagreement or competition between members at different levels of the same distribution channel, such as manufacturers and retailers.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.