The Recession of 2007-2009 Made Many Consumers Pessimistic About Their

question 150

Multiple Choice

The recession of 2007-2009 made many consumers pessimistic about their future incomes.How does this increased pessimism affect the aggregate demand curve?

• A)This will move the economy up along a stationary aggregate demand curve.
• B)This will move the economy down along a stationary aggregate demand curve.
• C)This will shift the aggregate demand curve to the left.
• D)This will shift the aggregate demand curve to the right.

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Definitions:

Sample Size

The number of individual observations or samples included in a study.

Confidence Interval

A cadre of values, from the statistical evaluation of samples, that is designed to encircle the value of an undetermined parameter within a population.

Level of Confidence

The degree of certainty, often expressed as a percentage, that a parameter lies within a specified range of values.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.