Which of the Following Is Considered the Basic Unit for Theory

question 52

Multiple Choice

Which of the following is considered the basic unit for theory development?

• A) concept
• B) proposition
• C) hypothesis
• D) variable

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Definitions:

Aggregate Demand Curve

The total demand for all goods and services in an economy at different price levels, typically downward sloping, indicating an inverse relationship between price level and demand.

Price Level

The mean of current prices for all goods and services created within the economy.

Rate of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a given period.

Lagging Economic Indicator

Refers to statistics that tend to change after the economy has already begun to follow a particular trend, and are used to confirm patterns seen in leading indicators.