Which of the Following Is Correct

question 7

Multiple Choice

Which of the following is correct?

• A)The short-run,but not the long-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
• B)The long-run,but not the short-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
• C)The long-run and short-run supply curves are both consistent with the idea that nominal variables affect real variables.
• D)Neither the long-run nor the short-run aggregate supply curve is consistent with the idea that nominal variables affect real variables.

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the true population parameter.

Population Mean

The average value of all measurements in a population, reflecting the central location of the data.

Alpha (α)

A threshold value in hypothesis testing used to determine whether to reject the null hypothesis, typically set at 0.05 or 0.01.

Population Mean

The average value of a population set, where the population includes all members of the set.