When the Price Level Falls

question 107

Multiple Choice

When the price level falls

• A) imports increase, and exports decrease, which causes a movement up along the aggregate demand curve.
• B) there is no impact on imports or exports, so there is no associated movement along the aggregate demand curve.
• C) imports decrease and exports increase, which cause a movement down along the aggregate demand curve.
• D) imports decrease and exports increase, which cause a movement up along the aggregate demand curve.

---

Definitions:

T-test

A statistical analysis method that contrasts the average values of two groups to ascertain if their difference is statistically significant.

Analysis of Variance (ANOVA)

A statistical method used to compare the means of three or more samples to find out if at least one of the sample means is different from the others.

Sum Squares Error (SSE)

A statistical measure used to determine the variance or deviation of observed values from the true values, often used in the context of linear regression analysis.

Between-treatments Variation

The differences in group means in an experiment that are attributed to the effect of the independent variable.