Put the items in the correct order.

Over time, the manager recognizes that the cost of new stock holds constant or rises at a slower than anticipated rate. In response, the store also may hold prices constant.

The manager initially permits inventory to grow and asks some employees to work reduced hours.

The store manager begins to see that fewer customers are visiting the store, and that inventory is building up in the stock room. At first, he doesn't know if this is temporary or permanent. $($To imagine temporary change, think of a cold, rainy summer that reduced purchases of suntan lotion.$)$

Both managers and customers adjust downward their expectations of the rate of inflation, and slowly the economy resettles at a new equilibrium.

The manager recognizes that the decrease in sales is permanent, so he reduces his orders of new stock. Sadly, he also needs to lay off an employee.