Which of the Following Correctly Describes the Automatic Mechanism Through

question 35

Multiple Choice

Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?

• A)the leftward shift of the short-run aggregate supply curve that occurs after a recession
• B)the rightward shift of the short-run aggregate supply curve that occurs after a recession
• C)the leftward shift of the aggregate demand curve that occurs after a recession
• D)the rightward shift of the aggregate demand curve that occurs after a recession

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Definitions:

Test Statistic

A figure derived from data within a sample, utilized to determine the rejection of the null hypothesis in the context of statistical hypothesis testing.

P-value

A measure in statistical hypothesis testing that helps determine the significance of results.

Two-Tailed Test

A statistical test of hypothesis where the area of interest spans both tails of the distribution, allowing for investigation of deviations in two opposite directions.

Sample Proportions

The fraction or percentage of observations in a sample that fall into one particular category or class.