Other Things Constant, an Increase in Resource Prices Will

question 142

Multiple Choice

Other things constant, an increase in resource prices will

• A) increase aggregate demand.
• B) decrease aggregate demand.
• C) decrease short-run aggregate supply.
• D) increase short-run aggregate supply.

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Definitions:

Observed Response

The actual outcome that is measured or observed in an experiment or study.

Regression Line

A line through a scatter plot of data points that best expresses the relationship between those points, often used in predictive analysis.

Test Statistic

A value calculated from sample data during a hypothesis test that is used to decide whether to reject the null hypothesis.

Null Hypothesis

In statistical hypothesis testing, it is the hypothesis that there is no effect or no difference, and it serves as the default or starting assumption.