A Decrease in Sales Expectations May Shift the AD Curve

question 38

Multiple Choice

A decrease in sales expectations may shift the AD curve to the

• A)Left,causing more undesired investment.
• B)Left,causing less undesired investment.
• C)Right,causing more undesired investment.
• D)Right,causing less undesired investment.

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Definitions:

Control Group

In experimental research, the group that does not receive the treatment or intervention being tested, serving as a comparison to the experimental group.

Cause-Effect Relationship

A connection between two events where the first event (the cause) makes the second event (the effect) happen.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Experimenter Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can be subtly communicated to the participants.