How Are the Effects of an Increase in the Price

question 96

Multiple Choice

How are the effects of an increase in the price level that is greater than expected shown in the aggregate demand and aggregate supply model?

• A) by shifting the short-run aggregate-supply curve right
• B) by shifting the short-run aggregate-supply curve left
• C) by moving to the right along a given aggregate-supply curve
• D) by moving to the left along a given aggregate-supply curve

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Definitions:

Average Number

This term often refers to the arithmetic mean, which is calculated by summing all numbers in a set and dividing by the count of those numbers.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected, also known as a "false negative" finding.

Null Hypothesis

The null hypothesis is a statement in hypothesis testing that there is no effect or no difference, and it serves as a default position until evidence suggests otherwise.

Alternative Hypothesis

A hypothesis that proposes there is a statistically significant difference between two variables, contrasting with the null hypothesis.