Suppose Consumers Spend More Than Usual

question 111

Multiple Choice

Suppose consumers spend more than usual.In the short run,prices will ____;in the long run,prices will _____ from their starting point.

• A) increase;remain unchanged
• B) increase;increase
• C) remain unchanged;decrease
• D) remain unchanged;increase

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Definitions:

Nonbreaching Party

The party in a contractual agreement that has not failed to fulfill their obligations as set forth in the contract.

Absolute Duty

A legal obligation that is unconditional and requires performance under any circumstances, without exceptions.

Novation

The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. Typically, there is a substitution of a new party who is responsible for the contract and the removal of an original party’s rights and duties under the contract.

Make Restitution

The act of compensating for loss, damage, or injury caused, often in the context of legal or financial remedies.