A recent drought in Australia has been the primary cause of the inflation the nation experienced in the early months of 2003. This statement means the:
A) nation has less concern about its natural environment than in years past.
B) prices of goods and services has been steadily increasing.
C) country has experienced the business problems associated with the prosperity stage of the business cycle.
D) macroenvironment for companies operating in Australia has been influenced most by demographic changes.
E) prices of goods and services have been rising.

Question

Quizplus · Accepted Answer

The statement indicates that the drought led to inflation, which means the prices of goods and services have been rising.

A Recent Drought in Australia Has Been the Primary Cause