Scenario 33-2 Imagine That in the Current Year the Economy Is in Is

question 163

Multiple Choice

Scenario 33-2
Imagine that in the current year the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time.
-Refer to Scenario 33-2. In the long run, the change in price expectations created by the rise in stock prices

• A)long-run aggregate supply right.
• B)long-run aggregate supply left.
• C)short-run aggregate supply right.
• D)short-run aggregate supply left.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation and observation.

Casual Impressions

Refers to the informal and intuitive judgments we make about others.

Correlation Coefficients

Statistical measures expressing the extent to which two variables move in relation to each other, ranging from -1 to 1.

Consistent Increase

A steady and continuous rise in quantity, size, number, or extent over a period of time.