Which of the Following Pairs of Terms Describes the Same

question 43

Multiple Choice

Which of the following pairs of terms describes the same concept or situation?

• A) implied-in-law contract and implied-in-fact contract
• B) implied-in-law contract and quasi-contract
• C) implied-in-fact contract and quasi-contract
• D) formal contract and implied-in-law contract

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Definitions:

Potential Output

The highest level of real GDP that can be sustained over the long term without increasing inflation.

Price Level

The average of all current prices for goods and services in an economy, reflecting the cost of living.

Real GDP

Gross Domestic Product corrected for the effects of inflation, offering a better measure of the true scale and expansion of an economy.

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, including consumption, investment, government spending, and net exports.