Using Figure 1 Above, If the Aggregate Demand Curve Shifts

question 94

Multiple Choice

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

• A) P1 and Y2.
• B) P3 and Y2.
• C) P2 and Y1.
• D) P3 and Y1.

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Definitions:

Statistic

A numerical datum or piece of data derived from a study of a large quantity of numerical data, used for analyzing features of that population.

p < .05

A statistical term indicating that the probability of the observed data, or more extreme, under the null hypothesis is less than 5%, suggesting the results are statistically significant.

Probability

A measure of the likelihood of a particular event or outcome occurring, expressed on a scale from 0 (impossibility) to 1 (certainty).

Results

Outcomes or data obtained from experiments, studies, or any process designed to gather information.