If Policymakers Decrease Aggregate Demand,then in the Short Run the Price

question 68

Multiple Choice

If policymakers decrease aggregate demand,then in the short run the price level

• A)falls and unemployment rises.
• B)and unemployment fall.
• C)and unemployment rise.
• D)rises and unemployment falls.

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Definitions:

Probability

An assessment of the chance that an event will take place.

Coin

A flat, typically round piece of metal with an official stamp, used as money or in games.

99.7%

Represents the percentage of data that falls within three standard deviations of the mean in a normal distribution, according to the empirical rule.

Sampling Distribution

the probability distribution of a statistic obtained through a large number of samples drawn from a specific population.