Consider the Basic AD/AS Macro Model in Long- Run Equilibrium

question 39

Multiple Choice

Consider the basic AD/AS macro model in long- run equilibrium. An expansionary AD shock would have _ output effect in the short run and _ output effect in the long run.

• A)a positive; a positive
• B)a positive; no
• C)no; a positive
• D)no; no
• E)not enough information to know

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Definitions:

Correlation

A statistical measure that expresses the extent to which two variables change together, indicating the strength and direction of their relationship.

MANOVA

Multivariate Analysis of Variance, a statistical test used to compare the means of multiple dependent variables across one or more independent variable groups.

ANCOVA

Analysis of Covariance, a statistical technique that combines ANOVA and regression to analyze the impact of one or more categorical independent variables on a continuous dependent variable, while controlling for one or more covariates.

Dependent Variable

The outcome variable or the predicted variable in a regression equation.