According to Keynesian Economics, If There Are Unutilized Resources in the Economy

question 89

Multiple Choice

According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand decreases

• A) real GDP will rise and price level will remain constant.
• B) real GDP will fall and price level will remain constant.
• C) real GDP will rise and price level will rise.
• D) real GDP will rise and price level will fall.

---

Definitions:

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption to test against in statistical analysis.

Maximum Temperature

The highest recorded temperature in a specified period or area.

Indicator Variable

A binary variable that takes the value of 0 or 1 to indicate the absence or presence of some categorical effect or attribute.

Logistic Regression

A statistical method used for analyzing datasets in which there are one or more independent variables that determine an outcome.