If Potential Output Exceeds Actual Output, the Aggregate Demand Curve

question 151

True/False

If potential output exceeds actual output, the aggregate demand curve shifts downward over time.

---

Definitions:

Order Effects

The impact of the order in which treatments, tasks, or stimuli are presented on the participants' responses in an experiment.

Counterbalanced Crossover Designs

A research method where participants are exposed to multiple conditions in a specific sequence to control for the effects of the condition order on outcomes.

Internal Validity

The degree to which the results of a study can be attributed to the interventions or variables being tested, rather than external factors.

Order Effects

The impact that the sequence of presenting stimuli or conditions can have on participant responses in an experimental design.