Equilibrium GDP in Excess of Potential GDP Eventually Will Cause

question 27

Multiple Choice

Equilibrium GDP in excess of potential GDP eventually will cause the aggregate

• A)demand curve to shift outward.
• B)supply curve to shift outward.
• C)supply curve to shift inward.
• D)demand curve to become flatter.

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Definitions:

Seasonal Trend

A pattern in data that repeats at regular intervals over time, typically within a year.

Indicator Variable

A variable that takes on values of 0 or 1 to indicate the absence or presence of a categorical effect that may influence dependent variables.

Seasonal Index

Seasonal index refers to a numerical value that is assigned to specific time intervals to measure the seasonal pattern or variation in a data set over a period.

Deseasonalized

Deseasonalized data refers to the removal of seasonal effects from a time series to better identify trends and other underlying patterns.