An Expansionary Gap Is Closed in the Long Run by A(n)

question 114

Multiple Choice

An expansionary gap is closed in the long run by a(n) :

• A)rightward shift of the short-run aggregate supply curve.
• B)leftward shift of the short-run aggregate supply curve.
• C)movement to the right along a fixed short-run aggregate supply curve.
• D)increase in aggregate demand.
• E)decrease in aggregate demand.

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often tested against an alternative hypothesis in statistical analysis.

Unrelated Phenomena

Events or occurrences that have no direct connection or influence on each other.

Scientific Reasoning

The process of using logical and empirical methods to formulate, test, and modify hypotheses and theories about the natural world.