A Change in Which of the Following Parameters Shifts the AD

question 65

Multiple Choice

A change in which of the following parameters shifts the AD curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)$ ?

• A) \(\pi _ { t }\)
• B) \(\bar { a }\)
• C) \(\bar { b }\)
• D) \(\bar { m }\)
• E) None of these answers are correct.

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Definitions:

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables using a linear equation.

Correlational Analysis

A statistical method used to determine the degree to which two variables are related.

Analysis Of Variance

A test for the difference between two or more means. A simple analysis of variance (or ANOVA) has only one independent variable, whereas a factorial analysis of variance tests the means of more than one independent variable. One-way analysis of variance looks for differences between the means of more than two groups.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points.