With a Cost Shock, a Large Decrease in Output Relative

question 142

Multiple Choice

With a cost shock, a large decrease in output relative to the increase in the price level would occur if the ________ curve is relatively ________.

• A) AS; flat
• B) AS; steep
• C) AD; flat
• D) AD; steep

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" finding.

Multiple T Tests

Statistical tests used to compare the means of two groups on several different variables or outcomes.

Grade Level

A step or stage in an education system that categorizes students based on age, development, or years of schooling.

Null Hypotheses

A hypothesis that there is no significant difference or effect and any observed difference is due to chance.