When Cost-Push Inflation Starts,real GDP ________ and the Price Level

question 240

Multiple Choice

When cost-push inflation starts,real GDP ________ and the price level ________.

• A)decreases;falls
• B)does not change;falls
• C)decreases;rises
• D)does not change;does not change
• E)increases;falls

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Definitions:

Multidomestic Strategy

A strategy whereby global firms respond to differentiated needs and preferences in each local market in which they operate.

Meganational Strategy

A strategy whereby global firms focus on increasing profitable growth by reaping cost reductions from economies of scale and other advantages of global integration.

Transnational Strategy

A strategy whereby global firms take a hybrid approach that combines the meganational and multidomestic strategies, simultaneously offering the benefits of both global and local advantages.