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Explain How a Budget Can Help Management Implement Strategy

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Explain how a budget can help management implement strategy.


Definitions:

Income Effect

Shifts in economic or personal income and how these shifts influence the demand for certain goods or services.

Disparity of Income

The gap in income and wealth distribution among individuals or groups within a society, leading to economic inequality.

Nominal Wages

The amount of money paid to employees without adjustment for inflation, reflecting the face value rather than the real purchasing power.

Real Wages

The buying capacity of earnings, when accounted for inflation, showing the amount of goods and services that can be purchased.

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