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Refer to the above graph.Assume that the economy is at equilibrium at AD1 and AS1 and then is hit with both demand-pull and cost-push inflation.If this occurs, then, in the short run:
Social Regulations
Rules imposed by government to regulate the impact of business activities on public health, safety, the environment, and social welfare.
Rational Basis Review
A legal standard used by courts to evaluate the constitutionality of a statute or ordinance, where the government only needs to show that the law is rationally related to a legitimate government interest.
Equal Protection
The constitutional guarantee that no person or group will be denied the same protection of the laws that is enjoyed by other similarly situated individuals.
Taxing Power
The legal authority granted to governmental entities to impose taxes on individuals and organizations to raise revenue for public purposes.
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