When a Price Shock Has Occurred,inflation Returns to Its Pre-Shock

question 59

Multiple Choice

When a price shock has occurred,inflation returns to its pre-shock rate ________.

• A)in the period following the price shock
• B)in the period when output has returned to its pre-shock rate
• C)once the output gap has returned to zero
• D)only in the long run
• E)none of the above

---

Definitions:

Selling Expenses

Costs incurred directly and indirectly in making sales, including advertising, commissions, and salaries of sales staff.

Human Resource Management

The strategic approach to the effective management of people in a company or organization in a way that helps their business gain a competitive advantage.

Sales Discounts

Sales discounts are reductions in price offered to customers, typically to encourage prompt payment or bulk purchases.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.