If the Short-Run Aggregate Supply Curve Is Positively Sloped and the Fed

question 50

Multiple Choice

If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply,aggregate demand:

• A)falls,which increases real GDP and the price level.
• B)increases,which decreases real GDP and the price level.
• C)falls,which decreases real GDP and increases the price level.
• D)increases,which decreases real GDP and increases the price level.
• E)increases,which increases real GDP and the price level.

---

Definitions:

Expected Frequencies

The predicted counts of occurrences across different categories that one would expect if a hypothesis were true.

Chi-square Statistic

A measure used in statistics to evaluate the differences between observed and expected frequencies in categorical variables.

Expected Frequencies

In statistics, the numbers of observations or outcomes that one would expect to occur in each category if the null hypothesis were true.

Nonparametric Tests

Statistical tests not relying on data belonging to any particular distribution; often used when data does not meet the assumptions of parametric tests.