If the Short-Run Aggregate Supply Curve Has a Positive Slope,effective

question 149

Multiple Choice

If the short-run aggregate supply curve has a positive slope,effective fiscal policy to correct for an expansionary gap will

• A)only reduce the price level
• B)only reduce real GDP
• C)only increase the price level
• D)only increase real GDP
• E)reduce both the price level and real GDP

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Definitions:

Level Of Significance

The probability of rejecting the null hypothesis when it is true, typically set as a threshold like 0.05 or 0.01 before conducting a hypothesis test.

Sample Size

Refers to the number of observations or elements selected from a population to conduct a study.

Population Proportion

A fraction or percentage that represents a part of the total population sharing a particular characteristic or attribute.

Sample Proportion

The fraction or percentage of the sample that represents a particular trait or characteristic.