A Failure to Exercise Care or to Act as a Reasonable

question 6

Short Answer

A failure to exercise care or to act as a reasonable person would act is a breach of the ________.

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Definitions:

Price Index

A number that shows the average price of products; changes in a price index over time show changes in the economy’s average price level.

Price Level

A measurement of the average of current prices across the entire spectrum of goods and services produced in the economy.

Aggregate Demand

The relationship between the economy’s price level and aggregate output demanded, with other things constant.

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods demanded.