Refer to the Information Provided in Figure 9

question 240

Multiple Choice

Refer to the information provided in Figure 9.3 below to answer the questions that follow. Figure 9.3
-Refer to Figure 9.3. If autonomous planned expenditure increases by $20 billion, equilibrium aggregate output ________ to $________ billion.

• A) decreases; 360
• B) increases; 550
• C) increases; 600
• D) increases; 640

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Definitions:

Control Group

In experimental research, the group that does not receive the experimental treatment, serving as a baseline to compare the effects of the treatment.

False Positives

An error in which a test incorrectly indicates the presence of a condition that is not actually there.

Type II Error

A statistical error that occurs when one fails to reject a false null hypothesis, also known as a false negative.

Difference-In-Difference

An estimator that identifies the causal effect of a treatment, like a special promotion, by comparing the periods before and after the treatment between an experimental group and a control group. The second difference is designed to remove selection bias.