In the Short Run, If Aggregate Demand Shifts to the Left

question 295

Multiple Choice

In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then

• A) the level of economic activity rises.
• B) a recessionary gap occurs.
• C) there is no change in real GDP and the price level.
• D) an inflationary gap occurs.

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Definitions:

Electronic Control

Systems or devices that use electrical signals to regulate or manage other electronic systems.

Significant Level

This term likely refers to significance level; thus it is the threshold at which the p-value of test results must fall below to reject the null hypothesis, indicating statistical significance.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.

Actual Temperatures

The measured value of temperature, not adjusted or normalized, representing real-world conditions.