Because Shifts in Aggregate Demand Are Not Viewed as Being

question 102

Multiple Choice

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of

• A)the natural rate hypothesis.
• B)monetarism.
• C)the Phillips curve model.
• D)real business cycle theory.

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Definitions:

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in the predictor variables.

Independent Variable

In experimental and observational studies, it's the variable that is manipulated or categorized to observe its effect on the dependent variable.

Standard Error of the Estimate

A measure that indicates the accuracy with which a regression line represents the data points.

Simple Linear Regression

An analytical technique that fits a linear equation to data points to model how a dependent variable changes with one independent variable.