A country experiences a sudden, sharp, and unpredicted rise in the overall price level. A large manufacturing firm was in the final planning stages for a multi-year factory expansion project. Which of the following actions is the most probable and logical response by the firm's leadership to this new economic environment?

Planning in an Unpredictable Economy

Analyzing the Ripple Effects of Unexpected Inflation

If a country experiences a high but stable and perfectly predictable rate of price increases year after year, businesses and households can make long-term financial plans with little to no economic uncertainty.