-Refer to the Graph in the Exhibit

question 12

Multiple Choice

-Refer to the graph in the exhibit.How would long-run equilibrium be established, assuming no government intervention?  

• A) by an increase in short-run aggregate supply to remove the expansionary gap
• B) by a decrease in short-run aggregate supply to remove the expansionary gap
• C) by a decrease in short-run aggregate supply to remove the recessionary gap
• D) by an increase in short-run aggregate supply to remove the recessionary gap

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Definitions:

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on data collected from a sample.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.

Descriptive/Correlational Research Method

A type of non-experimental research method where researchers observe and record participants' behavior to establish relationships between variables without influencing the study's outcomes.

Conclusions Concerning Cause

Final judgments or decisions reached by reasoning, especially about why something happens or the reason for a particular effect.