As the Aggregate Demand Curve Shifts Leftward Along a Given

question 21

Multiple Choice

As the aggregate demand curve shifts leftward along a given aggregate supply curve,

• A)unemployment and inflation are higher.
• B)unemployment and inflation are lower.
• C)unemployment is higher and inflation is lower.
• D)unemployment is lower and inflation is higher.

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Definitions:

Internal Validity

The extent to which a study is free from systematic error or bias, allowing for the accurate attribution of causality to the variable being studied.

External Validity

How much the conclusions drawn from a research can be seen as applicable across various scenarios and to other populations.

Longitudinal Study

A research method that involves repeated observations of the same variables (such as people) over short or long periods of time, often years or decades.

Demographically Similar

Refers to groups of people who share similar characteristics such as age, gender, income level, and education, often used in research to create comparable cohorts.