A Demand Shock That Increases Real GDP Above Its Full-Employment

question 174

Multiple Choice

A demand shock that increases real GDP above its full-employment level will,in the long run,

• A) lead to a higher wage rate and an upward shift of the aggregate supply curve
• B) lead to a lower wage rate and a downward shift of the aggregate supply curve
• C) lead to a higher wage rate and a rightward shift of the aggregate demand curve
• D) lead to a lower wage rate and a leftward shift of the aggregate demand curve
• E) cause no further shifts in the aggregate supply or aggregate demand curve

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Definitions:

Baldus' Research

Refers to a study by David Baldus that examined racial disparities in the application of the death penalty in the United States, highlighting systemic biases in capital sentencing.

Supreme Court Case

A legal dispute that has been escalated to the highest court in a country, especially referring to the Supreme Court in the United States, where decisions have wide-reaching implications.

McClesky V. Kemp

A landmark U.S. Supreme Court case regarding the constitutionality of the death penalty and racial discrimination.

Disproportionately

To an extent that is too large or too small in comparison with something else, especially in a way that is unfair or unjust.