-Refer to Exhibit 16-4

question 27

Multiple Choice

-Refer to Exhibit 16-4.If LRAS₁ shifts to LRAS₂,and this causes AD₁ to shift to AD₂,economists would call this a

• A) rational expectations cycle.
• B) policy ineffectiveness proposition.
• C) short run Phillips curve.
• D) real business cycle.

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Definitions:

Increased

Describes a process or trend where there is an augmentation or rise in the level, number, or amount of something.

Lifetime

The duration or period from an individual's birth to their death, or the existence span of an object or concept.

Increased

Describes a situation or quantity that has grown or become larger or greater in size, amount, intensity, or degree.

Separated Couples

Partners who have chosen to live apart but are not legally divorced; this can be a temporary or long-term arrangement often preceding divorce.