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Suppose a Shift in Aggregate Demand Creates an Economic Contraction

question 91

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Suppose a shift in aggregate demand creates an economic contraction.If policymakers can respond with sufficient speed and precision,they can offset the initial shift by shifting


Definitions:

Foreseeability

A legal principle referring to the predictability or anticipation of risks at the time of a contractual agreement.

Proximate Cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Business Invitees

Those people, such as customers or clients, who are invited onto business premises by the owner of those premises for business purposes.

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