Johnson Company Makes Widgets, Which It Then Sends to Smith

question 10

Multiple Choice

Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a:

• A)Critical customer.
• B)Upstream product supplier.
• C)Aftermarket supplier.
• D)Downstream product supplier.

---

Definitions:

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.

Fiscal Policy

Governmental adjustments in spending levels and tax rates aimed at influencing economic activity.

Budget Cycle

The periodic process of planning, creation, execution, and evaluation of a budget, often spanning a fiscal year.