How Is the Effect of a Decrease in the Price

question 101

Multiple Choice

How is the effect of a decrease in the price level represented?

• A) by a shift to the right of the aggregate-demand curve
• B) by a shift to the left of the aggregate-demand curve
• C) by a movement to the left along a given aggregate-demand curve
• D) by a movement to the right along a given aggregate-demand curve

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Definitions:

Statistical Significance

Indicates that the observed results are unlikely to have occurred by chance, according to a predefined level of significance.

Type I Error

The statistical mistake of rejecting a true null hypothesis, also known as a "false positive."

Type II Error

The error that occurs when one fails to reject a false null hypothesis, also known as a false negative.

Power

The probability that a statistical test will correctly reject a false null hypothesis, or the test's sensitivity to detecting an effect.