In the Aggregate Demand-Aggregate Supply Model,which of These Changes Is

question 2

Multiple Choice

In the aggregate demand-aggregate supply model,which of these changes is most likely when the cost of production increases in the long run?

• A)A leftward shift of the short-run aggregate supply curve
• B)A leftward shift of the short-run aggregate demand curve
• C)A rightward shift of the short-run aggregate supply curve
• D)An increase in the potential output level increases.
• E)A decrease in the actual price level decreases.

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated or categorized to observe its effect on a dependent variable.

Coefficient Of Correlation

A measure that calculates the strength and direction of a linear relationship between two variables, represented as 'r'.

Dependent Variable

In an experiment or model, it is the variable being tested and measured, which is expected to change as a result of changes in the independent variable(s).

Independent Variable

A variable in an experiment or statistical model that is manipulated or controlled by the experimenter to observe its effect on a dependent variable.