Figure 5-2 ​

question 32

Multiple Choice

Figure 5-2
​
-In Figure 5-2, an increase in government spending would cause

• A)an outward shift in the aggregate supply curve and an increase in the price level.
• B)an outward shift in the aggregate demand curve and an increase in the price level.
• C)an inward shift of the aggregate demand curve and an increase in the price level.
• D)an inward shift of the aggregate demand curve and a decrease in the price level.

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a given set of observations, used as a starting point for statistical testing against the alternative hypothesis.

Alternative Hypothesis

A statement that suggests a possible difference or effect, typically to be tested against a null hypothesis in statistical analysis.

Null Hypothesis

In statistics, a hypothesis that posits no effect or no difference, and the assumption that any deviations from this are due to chance.

Hypothesis Testing

A method of statistical inference used to decide whether a hypothesis about a parameter in a population is likely to be true, based on sample data.