A Short-Run Open-Economy Model with Demand Shocks Can Analyze the Effect

question 122

Multiple Choice

A short-run open-economy model with demand shocks can analyze the effect on _____ if output prices and factor prices are sticky.

• A) inflation
• B) real economic activity (real GDP and unemployment)
• C) long-run variables
• D) expectations

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Definitions:

Line Extension

A strategy that involves introducing additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Category Extension

The strategy of using an established brand's name to enter a new product category or market segment, leveraging the brand's existing reputation and customer base.

Category Extension

The practice of expanding a brand or product line into new categories or markets, leveraging existing brand equity to introduce new offerings.