-Refer to Figure 15-10

question 150

Multiple Choice

-Refer to Figure 15-10.Suppose that output in the economy is currently below full employment.If real GDP is $6.8 trillion and a demand shock lowers real GDP to $6.5 trillion,what would we expect to occur in the long run?

• A) The aggregate supply curve will shift upward as wages fall.
• B) The aggregate supply curve will shift downward as wages fall.
• C) The aggregate demand curve will shift rightward as wages fall.
• D) The aggregate demand curve will shift leftward as wages fall.
• E) No further changes in aggregate supply or aggregate demand without government intervention.

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Definitions:

Alternative Hypothesis

A statement that directly contradicts the null hypothesis by stating there is a statistically significant effect or difference.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as a default position that there is no relationship between two measured phenomena.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, typically representing a new theory or perspective.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.