According to New Classical Theory,if the Public Correctly Anticipates a Government

question 33

Multiple Choice

According to new classical theory,if the public correctly anticipates a government policy to increase aggregate demand,then the

• A) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be downward-sloping.
• B) long-run Phillips curve will be upward sloping,but the short-run Phillips curve will be downward-sloping.
• C) short-run Phillips curve will be upward sloping,but the long-run Phillips curve will be vertical.
• D) long run Phillips curve will be upward sloping,but the short-run Phillips curve will be vertical.
• E) short- and long-run Phillips curves will be vertical.

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Definitions:

Stable

Describes a state of equilibrium or consistency within a system, characterized by the absence of significant change or fluctuation.

Socially Excluded

Individuals or groups who are marginalized from participating fully in economic, social, and cultural life of their community or society.

Socially Constructed Attributes

Traits, identities, and social roles that are perceived and understood through the collective agreement of society rather than stemming from inherent or natural qualities.

Stigmatized

Describes individuals, groups, behaviors, or conditions that are disapproved of or discriminated against based on societal norms and prejudices.