In the Macroeconomy, Demand-Side Shifts Change

question 46

Multiple Choice

In the macroeconomy, demand-side shifts change:

• A) only the price level in the long run, while output eventually returns to its long-run potential level.
• B) only the output level in the long run, while prices eventually return to their long-run potential levels.
• C) aggregate demand only, which eventually shifts back in the long run.
• D) aggregate demand only, which is why the price level remains unaffected in the long run.

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Definitions:

Normal Distribution

The probability distribution is evenly spread around the mean, signifying more frequent occurrences of data points near the mean than those that are more distant.

Exponential Distribution

The exponential distribution is a continuous probability distribution that is often used to model the time between events in a process that occur continuously and independently at a constant average rate.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Margin Error

The amount of error that one can expect in an estimate, often expressed as a plus-or-minus figure and used in statistical analysis to indicate confidence in results.