You operate in an economy that currently has an average inflation rate of 2%. Inflation affects the production, advertising, commercial and market research costs of your company. It is unlikely that inflation will reach much higher levels in the future. Should this be the case, the government may decide to impose price control on all brands.
The Gross National Product (GNP) provides you with information about trends in the Markstrat economy. In the recent past, the overall economy has been growing at a rate of 4%.