Explain What Factors Cause Shifts of the Aggregate Demand Curve

question 59

Essay

Explain what factors cause shifts of the aggregate demand curve in the open economy model.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing how one may predict the other.

Naturalistic Observation

The study method where subjects are observed in their natural environment without any manipulation by the observer.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.

Independent Variable

In experimental research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.