New Classical Economists Say That a Fully Anticipated Increase in Aggregate

question 193

Multiple Choice

New classical economists say that a fully anticipated increase in aggregate demand

• A) shifts the long-run aggregate supply curve to the right.
• B) shifts the long-run aggregate supply curve to the left.
• C) moves the economy up along its vertical long-run aggregate supply curve.
• D) eventually results in a self-correcting decrease in aggregate demand.

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Definitions:

Gini Ratio

A measure of income or wealth inequality within a population, ranging from 0 (perfect equality) to 1 (maximum inequality).

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy, leading to various economic and social issues.

Lorenz Curve

A graphical representation of income or wealth distribution within a society, showing the proportion of the total income earned by various segments of the population.

Distribution Of Income

Distribution of income refers to the way in which a nation’s total income is distributed among its population, affecting economic inequality.