Your company has been trying to grow since its creation in the year 2000, and the board of directors is dissatisfied that your department’s advertising budget has increased 40% since the year 2000 but that little growth has occurred as a result. What argument might you make in your defense? Select one: a. While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has dropped sharply, so we have been lucky to even stay in business over these years.
Your company has been trying to grow since its creation in the year 2000, and the board of directors is dissatisfied that your department’s advertising budget has increased 40% since the year 2000 but that little growth has occurred as a result. What argument might you make in your defense?
While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has dropped sharply, so we have been lucky to even stay in business over these years.
While the real value of the budget has grown 40%, the output of the national economy (as indicated by the mild growth of the GDP deflator) has been stagnant, so our lack of company growth is no surprise.
While the nominal value of the budget has increased 40%, the real value has increased even greater than that, so the lack of growth has to be attributable to another department of the company.
While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has remained relatively flat, so it is no surprise that our sales have likewise been flat.
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