In a Persisting Demand-Pull Inflation

question 105

Multiple Choice

In a persisting demand-pull inflation

• A)aggregate demand decreases and aggregate supply decreases.
• B)aggregate supply increases and aggregate demand increases.
• C)aggregate supply decreases and aggregate demand increases.
• D)aggregate demand increases and potential GDP decreases.
• E)None of the above answers are correct.

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Definitions:

Specified Value

A particular or defined value, often set as a criterion or standard.

Null Hypothesis

A hypothesis in statistics that assumes there is no significant difference or effect and serves as the default assumption in a hypothesis test.

Significance Level

A threshold used in hypothesis testing to determine whether to reject the null hypothesis, typically expressed as a probability such as 0.05 or 5%.

Type II Error

The failure to reject a false null hypothesis, also referred to as a "false negative."