How Does an Economic Contraction That Is Caused by a Shift

question 95

Multiple Choice

How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?

• A) The expected price level rises, shifting aggregate demand right.
• B) The expected price level rises, shifting aggregate demand left.
• C) The expected price level falls, shifting aggregate supply right.
• D) The expected price level falls, shifting aggregate supply left.

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Definitions:

Meta-analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion about a body of research, often used to assess the effectiveness of interventions.

Inferential Statistics

A branch of statistics that allows one to make predictions or inferences about a population based on a sample.

Arithmetic Mean

A measure of central tendency calculated by adding a set of numbers and dividing the sum by the count of those numbers.

Variability

The extent to which data points in a statistical distribution or set differ from each other and from their average.