If Policymakers Expand Aggregate Demand,then in the Long Run

question 71

Multiple Choice

If policymakers expand aggregate demand,then in the long run

• A)prices will be higher and unemployment will be lower.
• B)prices will be higher and unemployment will be unchanged.
• C)prices and unemployment will be unchanged.
• D)None of the above is correct.

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Definitions:

Uncorrelated

Describes two or more variables that do not have any statistical relationship, meaning changes in one do not predict changes in the other.

Correlation Coefficient

A statistical measure that describes the degree to which two variables move in relation to each other.

Strongest Relationship

In statistics and research, the most significant and consistent association between two variables.

Variables

Elements, features, or factors that are liable to vary or change within a study or experiment.