The Price Index Used to Illustrate the Aggregate Demand Curve

question 117

Multiple Choice

The price index used to illustrate the aggregate demand curve is the

• A) gross domestic product (GDP)deflator.
• B) consumer price index.
• C) producer price index.
• D) nominal price index.
• E) real price index.

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Definitions:

Positive Values

Numbers greater than zero.

Degree of Freedom

The number of independent ways by which a dynamic system can move without violating any constraint applied on it, often used in statistics to determine the number of values in the final calculation of a statistic that are free to vary.

Chi-square Distribution

Chi-square distribution is a distribution of the sum of squared independent random variables, used primarily in hypothesis testing for categorical data.

Chi-square Distribution

A probability distribution used in statistical analysis that is applicable when dealing with categorical data and assessing how likely observations are due to chance.