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Exhibit 14-8 Aggregate Demand and Supply

question 44

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Exhibit 14-8 Aggregate demand and supply
Exhibit 14-8 Aggregate demand and supply    -In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₃, A)  real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. B)  real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. C)  real GDP will increase from $3.0 to $4.0, and the price level does not change. D)  real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120. E)  real GDP will not change and the price level will increase from 100 to 140.
-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₃,

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Definitions:

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared deviations from the mean.

Mean

A measure of central tendency that is calculated by adding up all the values in a set and then dividing by the number of values.

Standard Deviation

An appraisal of the diversity or spread level exhibited by a collection of figures.

Normally Distributed

Refers to a probability distribution which is evenly shaped around the mean, indicating that occurrences of data close to the mean are more common than occurrences of data distant from the mean.

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