The Figure Below Shows Equilibrium in an Aggregate Demand-Aggregate Supply

question 21

Multiple Choice

The figure below shows equilibrium in an aggregate demand-aggregate supply model.In this figure,the shift from AS to AS' is likely to occur when:

• A)the actual price level is higher than expected.
• B)the actual price level is lower than expected.
• C)the unemployment rate is lower than the natural rate.
• D)the actual output is more than the potential output.
• E)the aggregate demand curve intersects the short-run aggregate supply curve at the potential output.

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Definitions:

Confidence Interval

A spectrum of numbers, resulted from analyzing sample data, predicted to include the true value of a parameter from an undetermined broader population.

Mean Gas Consumption

The average quantity of gas consumed over a specified period or across a group of units.

Sample Standard Deviation

A measure of the amount of variation or dispersion of a set of sample values from their sample mean.

Chi-squared Test Statistic

A measure used in statistics to determine the significance of the differences between categorical variables.