In the Short-Run, Lowering the Federal Funds Rate Will Shift

question 220

Multiple Choice

In the short-run, lowering the federal funds rate will shift the ________ and ________ real GDP.

• A) aggregate demand curve leftward; decrease
• B) aggregate demand curve rightward; increase
• C) aggregate supply curve rightward; increase
• D) aggregate demand curve leftward; increase

---

Definitions:

Significance Level

A threshold of probability set before an experiment to determine the acceptability of the evidence against the null hypothesis.

Student Body Proportions

The ratio or percentages of various groups within a school or college’s enrollment, such as by gender or race.

Freshmen

First-year students at a high school, college, or university.

Sample

A subset of individuals or observations taken from a larger population, used for statistical analysis.