The Figure Given Below Depicts Long-Run Equilibrium in the Aggregate

question 80

Multiple Choice

The figure given below depicts long-run equilibrium in the aggregate demand-aggregate supply model. The movement from Y₁ to Y₂ in this figure could have been caused by a:

• A) decrease in the size of the labor force.
• B) decrease in the price level.
• C) positive level of net investment.
• D) increase in autonomous consumption.
• E) decrease in autonomous consumption.

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Definitions:

Confidence

In statistics, it relates to the degree of certainty or reliability in an estimate or test result, often expressed as a confidence interval.

Monetary Error

A monetary error refers to inaccuracies or mistakes in financial transactions or accounting, which can impact financial statements or balances.

Confidence Interval

It refers to the range within which we expect a population parameter to lie with a certain degree of confidence, based on sample data.

Sample Mean

The average value of a given characteristic within a sample drawn from a population.