If the Economy Starts in Long-Run Equilibrium, a Permanent Fiscal

question 98

Multiple Choice

If the economy starts in long-run equilibrium, a permanent fiscal expansion will cause

• A) an increase in exchange rate, E.
• B) a decrease in exchange rate, E.
• C) an increase in output, Y.
• D) a decrease in output, Y.
• E) shifting of the AA curve up and to the right.

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Definitions:

Susie Phipps

A woman who challenged Louisiana's classification of her race based on an archaic law, highlighting issues of racial identity and legal classification in the United States.

White Privilege

Unearned advantages and societal benefits given to white individuals based on racial bias.

Unearned Assets

Benefits or privileges one receives simply by being part of a certain social group (often racial, gender-based, or economic) without any personal effort or achievement.

Systems of Advantage

Frameworks or structures that benefit certain groups over others based on characteristics like race, gender, or socioeconomic status.