-Refer to Exhibit 8-2

question 17

Multiple Choice

-Refer to Exhibit 8-2.What word (rises or falls) should go in blank (7) and blank (8) ,respectively,to summarize the resulting impact on short run equilibrium of the given change in the economy?

• A) rises; rises
• B) falls; falls
• C) rises; falls
• D) falls; rises

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Definitions:

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Statistical Procedure

A method of collecting, analyzing, interpreting, and presenting data.

Variables

Elements or factors that can change and affect the outcome of a study or experiment, classified into different types such as independent, dependent, and control variables.

Five-factor Model

A framework identifying five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.