Gage sells lumber to the archery industry, and he has to haul it to his buyers on his flatbed truck. His contract states that if the price of fuel for his truck increases his overall costs by a certain percentage, the price he gets for his lumber will automatically increase by the same percentage. This is an example of ______.
a. disinflation
b. stagflation
c. indexing
d. anchoring
c. indexing
You might also like to view...
The Big Mac index is a measure of how well the purchasing power parity theory works.
Answer the following statement true (T) or false (F)
A pie chart is a way to display information regarding two variables
a. True b. False Indicate whether the statement is true or false
A simultaneous rightward shift in SRAS and leftward shift in AD may come from the dollar _______________ in the aftermath of a ____________________ in United States real interest rates
A) depreciating; rise B) depreciating; fall C) appreciating; rise D) appreciating; fall
Which of the following is not an example of a monopolistically competitive firm?
A. Farmer Jones's wheat farm B. the Post Cereal Company C. Procter and Gamble, a large consumer products corporation D. T.J.'s Clothes, a local retail clothing store