If the Level of Autonomous Spending Increases at a Given

question 55

Multiple Choice

If the level of autonomous spending increases at a given price level,

• A)the aggregate expenditure line shifts upward; the economy moves upward along the aggregate demand curve
• B)the aggregate expenditure line shifts downward; the economy moves upward along the aggregate demand curve
• C)the aggregate expenditure line shifts upward; the aggregate demand curve shifts to the right
• D)the aggregate expenditure line shifts downward; the aggregate demand curve shifts to the left
• E)the aggregate expenditure curve shifts upward; the aggregate demand curve shifts to the left

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Definitions:

Normal Populations

Populations in which the distribution of data points follows a normal (bell-shaped) distribution curve.

Two-Tailed Hypothesis Test

A statistical analysis method where the significance of the observed data can be in either tail of the distribution, testing for either too high or too low outcomes relative to the hypothesized values.

Critical Value

A threshold in a statistical test that a test statistic must exceed to reject the null hypothesis.

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population variance is unknown.