The Following Is Likely to Occur After a ________ Shock

question 80

Multiple Choice

The following is likely to occur after a ________ shock: [AD↑ ⇒ Y↑ ⇒ T↑ ⇒ deficit↓ ⇒ G↑ ⇒ AD↑ ⇒ Y↑].

• A) positive aggregate demand
• B) positive aggregate supply
• C) negative aggregate demand
• D) negative aggregate supply

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Definitions:

Hypothesis

A tentative explanation or prediction that can be tested through scientific research.

Reliability

The consistency of a measure or test in producing stable and accurate results over multiple applications or time periods.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Operationalization

Refers to the process of strictly defining variables into measurable factors in research, allowing them to be empirically and quantitatively tested.