A Decrease in Aggregate Supply Means

question 23

Multiple Choice

A decrease in aggregate supply means:

• A) Both the real domestic output and the price level would decrease
• B) The real domestic output would increase and rises in the price level would become smaller
• C) The real domestic output would decrease and the price level would rise
• D) Both the real domestic output and rises in the price level would become greater

---

Definitions:

Replications

Repeating experiments or studies to ensure the results are consistent and reliable.

Null Hypothesis

A hypothesis that there is no significant difference or effect.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes a difference or effect, contrasting the null hypothesis.

Interaction

The effect of two or more variables combined that is different from the effect of the variables individually.