In the AD/AS Model, the Aggregate Demand for Goods and Services

question 157

Multiple Choice

In the AD/AS model, the aggregate demand for goods and services is composed of the purchases made by

• A) households and foreigners (net exports).
• B) businesses, bondholders, and foreigners (net exports).
• C) businesses and governments.
• D) consumers, investors, governments, and foreigners (net exports).

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Definitions:

Qualitative Variables

Variables that express categorical data and can be described or classified by qualities rather than numerical measures.

Contingency-table Test

A statistical test used to determine whether there is a significant association between two categorical variables.

Expected Cell Frequency

In the context of a contingency table, it is the number of observations expected in a cell based on the hypothesis being tested.

Chi-square Test of Independence

The Chi-square Test of Independence is a statistical test used to determine if there is a significant relationship between two categorical variables.