Exhibit 14A-2 Macro AD-AS Model

question 112

Multiple Choice

Exhibit 14A-2 Macro AD-AS Model

I n Exhibit 14A- 2, the intersection of AD with SRAS indicates:

• A) a short-run equilibrium.
• B) a long-run equilibrium.
• C) that the economy needs policies to increase unemployment.
• D) that the economy is at full employment.

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Definitions:

Substantial Performance

A legal principle indicating that a contract has been nearly completed, enabling the performing party to receive payment, minus damages for any minor unfinished work.

Workmanlike Manner

The quality of performance in a job or task that meets acceptable industry standards and practices.

Anticipatory Repudiation

Occurs when one party indicates by words or actions that they will not fulfill their contractual obligations in the future.

Divisible Contract

A contract that includes multiple agreements or parts, which can be separated so that the failure to perform one part does not necessarily breach the entire contract.