Keynesian Policies Are Ineffective at Combating Stagflation Because Stagflation Is

question 87

Multiple Choice

Keynesian policies are ineffective at combating stagflation because stagflation is caused by:

• A)budget surpluses.
• B)decreases in aggregate supply.
• C)trade deficits.
• D)decreases in aggregate demand.
• E)budget deficits.

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Definitions:

Substantial Performance Doctrine

A legal principle recognizing that a contract has been essentially fulfilled and deserves payment, despite minor deviations from the exact terms.

Implied Agency

A legal relationship formed by the actions of the parties involved rather than by written agreement or document.

Equal Dignity Rule

A legal doctrine requiring that contracts authorizing someone to conduct a transaction must be executed with the same formality as required for the transaction itself.

Statute of Frauds

A legal doctrine requiring certain types of contracts, such as for the sale of land or goods over a certain value, to be in writing to be enforceable.