(Figure: Decline in Aggregate Supply) the Figure Shows a Decline

question 40

Multiple Choice

(Figure: Decline in Aggregate Supply) The figure shows a decline in aggregate supply. A possible effect of this would be:

• A) a recession
• B) an increase in real GDP
• C) a boom
• D) a decrease in price level

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Definitions:

Discriminant Validity

The construct validity of a measure is assessed by examining the extent to which scores on the measure are not related to scores on conceptually unrelated measures.

Internal Consistency

A measure of the reliability of a psychological test or survey, assessing if all items evaluate the same characteristic and produce similar scores.

Convergent Validity

The construct validity of a measure is assessed by examining the extent to which scores on the measure are related to scores on other measures of the same construct or similar constructs.

Correlation Coefficient

A statistical measure that calculates the strength and direction of the relationship between two variables.