If Self-Correction Works,a Policy That Continually Increases Aggregate Demand Will

question 194

Multiple Choice

If self-correction works,a policy that continually increases aggregate demand will

• A)have a strong impact on GDP
• B)cause permanent inflation
• C)eventually cause the SRAS curve to shift to the right
• D)have relatively large impact on GDP
• E)will cause inflation to continually diminish

---

Definitions:

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, or other protected characteristics.

S Corporation

A type of corporation designed for small businesses where profits and losses can be passed through to the owner's personal tax return, avoiding double taxation.

Taxed

Refers to the imposition of financial charges or levies on an individual or entity by a governmental organization in order to fund various public expenditures.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.