Use the Following to Answer Questions

question 200

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6
-(Exhibit: Aggregate Expenditures Curve) Suppose government purchases rise by $100. In the aggregate demand/aggregate supply model,

• A) the aggregate demand curve shifts to the right by $100 at any given price level.
• B) the aggregate demand curve shifts to the right by ($100 * the multiplier) at any given price level.
• C) there is a downward movement along the aggregate demand curve such that real GDP demanded increases by $100.
• D) there is a downward movement along the aggregate demand curve such that real GDP demanded increases by ($100 * the multiplier).

---

Definitions:

Sample Size

The number of individual observations or samples included in a study.

Confidence Interval

A cadre of values, from the statistical evaluation of samples, that is designed to encircle the value of an undetermined parameter within a population.

Level of Confidence

The degree of certainty, often expressed as a percentage, that a parameter lies within a specified range of values.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.