According to the New Classical School, an Expected Increase in Government

question 45

Multiple Choice

According to the new classical school, an expected increase in government spending is associated with:

• A)a downward movement along the long-run Phillips curve.
• B)an upward movement along the short-run Phillips curve.
• C)a parallel outward shift of the long-run Phillips curve.
• D)an upward movement along the long-run Phillips curve.
• E)a downward shift of the short-run Phillips curve.

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Definitions:

Confidential Relationship

A bond between parties that necessitates the trust to not disclose classified or private information.

Consent

Agreement or permission for something to happen or someone to do something, often given expressly by all involved parties.

Forced

Action taken under compulsion or pressure, lacking voluntary intention.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with disregard to its truth, which is intended to induce another party to enter into a contract.