Suppose at Each Price Level, Autonomous Aggregate Expenditures Fall by $80

question 113

Multiple Choice

Suppose at each price level, autonomous aggregate expenditures fall by $80 billion. As a result, the aggregate expenditures curve shifts

• A) downward at each price level and results in a leftward shift in aggregate demand.
• B) upward at each price level and results in a rightward shift in aggregate demand.
• C) downward at each price level and results in a movement down along a given aggregate demand.
• D) upward at each price level and results in a movement up along a given aggregate demand.

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Definitions:

Obtained Value

The actual value or result measured or calculated from an experiment or survey.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to make a decision regarding the null hypothesis.

Alpha Level

The alpha level, often symbolized as α, is the threshold of statistical significance in hypothesis testing, commonly set at 0.05.

Pretest Score

An initial score or measurement taken before an intervention or treatment in research studies.