Suppose $\bar { a } _ { c } = 0.75$

question 41

Multiple Choice

Suppose $\bar { a } _ { c } = 0.75$ , $\bar { a } _ { i } = 0.20$ , $\bar { a } _ { g } = 0.20$ , $\bar { a } _ { e x } = 0.10$ , and $\bar { a } _ { i m } = 0.20$ ) For any given $R _ { t } , \bar { a }$ Equals ________ and the economy ________.

• A) 0; is in its long-run equilibrium
• B) 1.05; has experienced a positive aggregate demand shock
• C) 0.45; has experienced a positive aggregate demand shock
• D) -0.15; has experienced a negative aggregate demand shock
• E) 0.05; has experienced a positive aggregate demand shock

---

Definitions:

Type II Error

The mistake made by not rejecting an incorrect null hypothesis, often referred to as a false negative.

Gold Funds

Investment funds that focus on investing in gold and gold-related assets, offering a way to gain exposure to the price movements of gold.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used as a threshold in hypothesis testing.

Mean Percentage Rates

Average rates expressed as a percentage over a specified period.