With a Cost Shock, a Small Decrease in Output Relative

question 59

Multiple Choice

With a cost shock, a small 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:

Differential Validity

Test validation process aimed at discovering the validity of a test for various subgroups, e.g., females and members of visible minorities.

Separate Test Validation

The process of evaluating a test independently from other tests to ensure it accurately measures what it's intended to measure.

Subgroups

Distinctive smaller groups within a larger group or organization, often characterized by shared interests or traits.

Subjective Approach

An approach where the decision maker looks at the scores received by the various applicants on predictors, subjectively evaluates all of the information, and comes to an overall judgment.