If Prices Are Completely Flexible,then an Increase in Spending Growth

question 200

Multiple Choice

If prices are completely flexible,then an increase in spending growth will lead to an immediate:

• A) increase in real output growth without any change in inflation.
• B) decrease in real output growth without any change in inflation.
• C) decrease in inflation without any change in real output growth.
• D) increase in inflation without any change in real output growth.

---

Definitions:

Product Line

A group of related products under a single brand sold by the same company.

Product Mix

The combination of all the products a company sells.

Marketing Mix

A framework used by marketers consisting of the four Ps: Product, Price, Place, and Promotion.

Service

Intangible activities or benefits that an entity provides to consumers, which do not result in ownership of anything physical.