Consider the Basic AD/AS Macro Model

question 90

Multiple Choice

Consider the basic AD/AS macro model.The simple multiplier is reflected by the

• A)horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
• B)downward movement along the AD curve in response to a change in autonomous expenditure.
• C)size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
• D)upward movement along the AD curve in response to a change in autonomous expenditure.
• E)size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.

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Definitions:

Null Hypothesis

A hypothesis that suggests no significant difference or effect in a study.

Correlated

When two or more variables are related in some way, showing a tendency to vary together.

Pearson Correlation

A value ranging from +1 to -1 that indicates the degree of linear relationship between two variables, X and Y.

Degrees Of Freedom

Represents the number of independent values or quantities which can vary in the analysis without violating any constraints.