A Decrease in the Expected Price Level Shifts Short-Run Aggregate

question 38

Multiple Choice

A decrease in the expected price level shifts short-run aggregate supply to the

• A)right,and an increase in the actual price level shifts short-run aggregate supply to the right.
• B)right,and an increase in the actual price level does not shift short-run aggregate supply.
• C)left,and an increase in the actual price level shifts short-run aggregate supply to the left.
• D)left,and an increase in the actual price level does not shift short-run aggregate supply.

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Definitions:

Hypothesis Testing

A statistical method that utilizes sample data to evaluate a hypothesis about a population parameter.

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis.

Level Of Significance

The chance of mistakenly denying the null hypothesis in a statistical examination when in fact it is accurate.

Probability

A measure of the likelihood that an event will occur.