Milton Friedman Argued That the Economy Is Not in Long-Run

question 128

Multiple Choice

Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.

• A) is less than
• B) is greater than
• C) equals
• D) a and b

Identify the enforceability of promises and modifications in preexisting contracts.

Analyze the legal effect of an illusory promise and gratuitous promises in contract law.

Explain the importance of legal detriment and legal benefit in the context of enforceable contracts.

Understand the role and application of promissory estoppel in contract law.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or output.

Variable Cost

Expenses that change in direct proportion to the amount of business or production activity.

Variable Cost Per Unit

The cost that varies with the level of output or activities, calculated on a per-unit basis.

Units Sold

The total quantity of products sold by a business during a specific period.