If Policymakers Decrease Aggregate Demand,then in the Long Run

question 43

Multiple Choice

If policymakers decrease aggregate demand,then in the long run

• A)prices will be lower and unemployment will be higher.
• B)prices will be lower and unemployment will be unchanged.
• C)prices and unemployment will be unchanged.
• D)None of the above is correct.

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Definitions:

Probability

An indicator of how probable an event is, represented numerically between 0 and 1.

Nonrandom Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Sampling Error

Sampling error is the discrepancy between a sample statistic and its corresponding population parameter, caused by selecting a sample rather than conducting a census.

Mean Income

The average amount of income received over a specific period of time, calculated by dividing the total income by the number of recipients.