Refer to the Graph Below

question 112

Multiple Choice

Refer to the graph below.Assume that the economy is in initial equilibrium where AS₁ intersects AD₁.Then a supply shock occurs that shifts AS₁ to AS₂.If the government counters with an expansionary fiscal policy that shifts AD₁ to AD₂, then it is most likely that:

• A)AD₂ will shift to AD₁.
• B)AS₂ will shift to AS₁.
• C)AS₂ will shift to AS₃.
• D)AS₂ will shift to AS₃ and AD₂ will shift to AD₁.

---

Definitions:

Positively Skewed

A distribution shape where most values are concentrated on the left side, with the tail extending to the right, indicating that the mean and median are greater than the mode.

Values

Numerical quantities, principles, or beliefs that are considered important or hold significance in a specific context, such as statistical data or personal ethics.

Mean Squares

A term used in ANOVA representing the average of squared deviations, critical for assessing variance within and between groups.

Null Hypothesis

The null hypothesis is a statement or assumption that there is no effect or no difference in a statistical hypothesis test, serving as the default position that the test seeks to challenge.