The New Classical Model Implies That a

question 1

Multiple Choice

The new classical model implies that a

• A) budget surplus will effectively retard inflation emanating from excess demand.
• B) budget deficit will increase the real interest rate.
• C) substitution of debt for tax financing will leave aggregate demand and real output unchanged.
• D) planned budget deficit will be a highly effective tool to combat a recession.

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Definitions:

Social Justice

A concept based on the idea of creating a society or institution that is based on the principles of equality and solidarity, understands and values human rights, and recognizes the dignity of every human being.

Third Wave

A term popularized by Alvin Toffler, referring to the post-industrial society stage characterized by the production and dissemination of information technology and services.

Validity Concepts

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Third Wave

A term often associated with societal shifts or technological advancements, reflecting transformative changes in culture or industry.