In the Long Run, Attempts to Expand Beyond an Economy's

question 93

Multiple Choice

In the long run, attempts to expand beyond an economy's natural rate of unemployment tend to result in

• A) increased inflation.
• B) increased output.
• C) both increased output and increased inflation.
• D) neither increased output nor increased inflation.

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Definitions:

Estoppel

A rule whereby a person may not deny the truth of a statement of fact made by him or her when another person has relied and acted upon the statement.

Consideration

The benefit or value that must be exchanged between parties to form a valid contract.

Common Law

A legal system based on precedent and court decisions rather than written laws or statutes.

Statute Law

Law enacted by a legislative body, such as a parliament or congress, officially documented and codified.