If the Shifts in AD That Will Result from Policy

question 92

Multiple Choice

If the shifts in AD that will result from policy changes are fully and accurately anticipated, a decrease in government purchases or an increase in taxes would result in which of the following in the short run?

• A)​a higher level of real output and a higher price level
• B)​a higher level of real output but no change in the price level
• C)​a higher price level and a reduced level of real output
• D)​none of the above.

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Definitions:

Sample Approximates

Estimates derived from a sample that are used to infer characteristics of the overall population.

Research Hypotheses

Statements made by researchers that predict a relationship or difference between variables in a study.

Multiple Samples

The collection of two or more samples from different populations, which may be compared to each other in statistical analysis.

Population

The entire group of individuals or instances about whom the research is concerned, from which a sample may be drawn for analysis.