Figure 15-3 -In Figure 15-3,if the Economy Is Initially at Equilibrium at at Equilibrium

question 2

Multiple Choice

Figure 15-3
-In Figure 15-3,if the economy is initially at equilibrium at point B,an unanticipated increase in aggregate demand from A D₁ to A D₂ would cause,in the short run,

• A)the price level to rise from P₂ to P₁,real GDP to increase from Q₂ to Q₁,and the rate of unemployment to decrease.
• B)the price level to move from P₂ to P₁,but real GDP would stay at Q₁.
• C)the price level to rise by some amount less than P₁ but greater than P₂,and the rate of unemployment would decrease.
• D)no change in either the price level or real GDP,but a decrease in unemployment.

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Definitions:

Friedman Test

A method involving non-parametric statistics aimed at uncovering treatment discrepancies across various attempts.

Sign Test

A nonparametric test used to determine whether the median of a population differs from a specified value by examining the signs of differences rather than their magnitude.

Populations Differ

A concept in statistics and research indicating that two or more populations are not identical in terms of one or more characteristics.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information, often related to sample size in statistical analyses.