If Aggregate Demand Shifts Right, Then Eventually Price Level Expectations

question 46

True/False

If aggregate demand shifts right, then eventually price level expectations rise. The increase in price level expectations causes the short-run aggregate-supply curve to shift to the left.

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Definitions:

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the weighted average of all purchases.

Median Price

The middle price in a set of prices of goods or assets, where half the prices are higher and half are lower.

Frequency Distribution

A statistical tool that shows how often each different value in a set of data occurs.

Linear Regression Equation

The mathematical expression that represents the linear relationship between a dependent variable and one or more independent variables in linear regression.