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:

Parental Supervision

The act of parents or guardians overseeing and managing the activities, behavior, and safety of their children.

Wrongfully Convicted

Individuals who have been convicted of crimes they did not commit, often due to errors in the judicial process.

Guy Paul Morin

An individual wrongfully convicted in Canada, whose case highlights issues of wrongful convictions and flaws within the judicial system.

David Milgaard

was a Canadian wrongfully convicted of murder who spent over two decades in prison before being exonerated through DNA evidence.