The Purchasing Power of Money Increased During the Oil Crisis

question 59

True/False

The purchasing power of money increased during the oil crisis of 1979 because the aggregate price level increased but the growth rate of the money supply was faster than the increase in the price level.

---

Definitions:

Unilateral Mistake

A situation where only one party to a contract is mistaken about a fundamental fact or term of the contract.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation or owners' equity in property, or fairness and justice as applied in the legal system.

Unilateral Mistake

A contract law principle where an error made by one party does not affect their understanding of key terms or obligations, affecting the contract's enforceability.

Mutual Mistakes

A situation in a contract where all parties have a misunderstanding or incorrect belief about a basic assumption on which the contract is based.