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

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Definitions:

Cumulative Voting

A voting system that allows shareholders to concentrate their vote allocation among one or more candidates, enhancing minority shareholders' ability to elect a director.

Straight Voting

A corporate voting procedure in which shareholders may cast all votes for a single candidate for the board.

Cumulative Voting

A voting system that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates, often used in corporate board elections to strengthen the voting power of minority shareholders.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make important decisions for a corporation.