Able Builders,Inc

question 10

Essay

Able Builders,Inc.,contracts with Beach Assets Company to build a Cool Juice stand near Divers' Beach.The work is to begin on April 1 and be done by June 1,so that the stand can open for the summer.Able Builders does not finish until June 14.The stand opens but Beach Assets loses two weeks' early summer sales due to the delay.Is Beach Assets's duty to pay for the construction of the stand discharged

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Definitions:

Stabilize Output

Involves government or central bank interventions to minimize fluctuations in a country's economic production or GDP over the business cycle.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.

Automatic Stabilizer

Economic policies and programs, such as unemployment benefits and taxation, that automatically adjust to counteract economic fluctuations without direct intervention by policymakers.

Crowding-out

A situation where increased public sector spending leads to a reduction in private sector spending.