When a Recession Gets Under Way

question 104

Multiple Choice

When a recession gets under way:

• A) firms start to lay off workers to reduce costs.
• B) consumer confidence rises because people expect the eventual recovery.
• C) inflation always rises because the government prints more money.
• D) inflation falls because the government reduces its budget deficit.

---

Definitions:

Foreign Market

A market outside of a company's home country where it can sell its products or services.

Top Management

The highest-level executives in a company, responsible for setting strategy, direction, and leading the organization.

Material Resources

Physical tangibles that are used in the production or functioning of an organization, like raw materials, buildings, machinery, and equipment.

Formal Structure

The officially designated arrangement of roles and procedures within an organization.