One of the Reasons Why the AD Curve Slopes Downward

question 163

Multiple Choice

One of the reasons why the AD curve slopes downward is that as the

• A) price level rises,purchasing power rises.
• B) price level falls,purchasing power rises.
• C) nation's income level rises,purchasing power rises.
• D) nation's income level rises,purchasing power falls.
• E) This is a trick question,because the AD curve is upward sloping.

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Definitions:

Between-Treatments

Pertains to the variations between group means in an experiment and is key to determining whether treatment effects exist.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution.

Between-Treatments

The variation in data that is attributed to the differences in conditions or treatments applied in an experiment.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations or variables, used in statistical testing.