-If Aggregate Demand Shifts from AD4 to AD5

question 196

Multiple Choice

-If aggregate demand shifts from AD4 to AD5,

• A)output will rise and the price level will fall.
• B)output will fall and the price level will rise.
• C)neither output nor the price level will change.
• D)the price level will rise and output will remain unchangeD.
• E)output will rise and the price level will remain unchanged.

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Definitions:

Placebo Pills

Inactive substances or "sugar pills" used in clinical trials to test the effectiveness of treatments and control for the placebo effect.

Level of Agitation

The degree or extent of restlessness, uneasiness, or turmoil, often observed in individuals with psychiatric conditions.

Random Assignment

A selection procedure that ensures that participants are randomly placed either in the control group or in the experimental group.

Preexisting Differences

Variations in characteristics, conditions, or experiences among subjects before the onset of a study or intervention, potentially influencing outcomes.