The Relationship Between the Price Level and the Real Output

question 98

Multiple Choice

The relationship between the price level and the real output of goods and services in the economy without full adjustment or full information is represented by

• A)the long-run aggregate supply curve.
• B)the short-run aggregate supply curve.
• C)the aggregate demand curve.
• D)the distance between the long-run aggregate supply curve and the short-run aggregate supply curve.

---

Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested groups do.

Experimental Group

The group in an experiment that receives the variable being tested, as opposed to the control group, which does not.

Dependent Variable

This is the variable in experimental research that is expected to change as a result of manipulations to the independent variable.

Random Assignment

A method used in experiments to place participants into either a control or experimental group, ensuring that each has an equal chance of being assigned to any given group.