Other Things Constant, the Economy's Aggregate Demand Curve Shows That

question 305

Multiple Choice

Other things constant, the economy's aggregate demand curve shows that

• A) as the price level falls, real GDP decreases.
• B) any change in the price level shifts the aggregate demand curve.
• C) the quantity of real GDP demanded decreases when the price level rises.
• D) the quantity of real GDP demanded and the price level are not related.

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Definitions:

Independence

A condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another event.

Student Body

The collective group of students enrolled at a particular educational institution.

Significant Change

A notable or considerable difference in data or results that exceeds the expectations of random variation.

P-Value

A probability that provides a measure of the evidence against the null hypothesis given by the sample. Smaller p-values indicate more evidence against H0. For a lower tail test, the p-value is the probability of obtaining a value for the test statistic as small as or smaller than that provided by the sample. For an upper tail test, the p-value is the probability of obtaining a value for the test statistic as large as or larger than that provided by the sample. For a two-tailed test, the p-value is the probability of obtaining a value for the test statistic at least as unlikely as or more unlikely than that provided by the sample.