Policymakers Who Control Monetary and Fiscal Policy and Want to Offset

question 164

Multiple Choice

Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift

• A)aggregate supply to the right.
• B)aggregate supply to the left.
• C)aggregate demand to the right.
• D)aggregate demand to the left.

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Definitions:

External Validity

The extent to which the findings of a study can be generalized or applied to settings, populations, and times beyond the scope of the study itself.

Correlational Research

A type of research methodology that examines the relationship between two or more variables to determine if they are connected or correlated in some way.

Correlation Coefficients

A statistical measure that indicates the extent to which two variables fluctuate together. A value closer to 1 or -1 indicates a stronger relationship.

Magnitude

A measure of the size, amount, or extent of something.