If a Fall in Foreign Income Decreases Domestic Aggregate Expenditures

question 211

Multiple Choice

If a fall in foreign income decreases domestic aggregate expenditures by 20, the AD curve will:

• A)shift left by more than 20.
• B)shift left by less than 20.
• C)shift left by exactly 20.
• D)not shift at all.

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Definitions:

Deviation

The amount by which a single measurement differs from a fixed value such as the mean or expected value.

Normal Curve

A symmetrical, bell-shaped curve representing the distribution of values, scores, or measurements where most occurrences take place near the average.

Scores

Quantitative values assigned or obtained to represent certain characteristics or outcomes in data.

Standard Deviations

A measure of the dispersion or spread of a set of values in a dataset, indicating how much the values deviate from the mean.