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DrHang Has Developed a New Intelligence Test That Asks More

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Dr.Hang has developed a new intelligence test that asks more than 300 questions.After he administers it to many separate groups,he finds that Asian-born persons who took the test did very poorly on three questions relative to Western-born persons.Dr.Hang's test should be assessed for ___.


Definitions:

Aggregate Demand

The total market demand for goods and services within an economy at a fixed price level over a certain time period.

Crowding-Out Effect

The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending.

Government Spending

The total amount of money that a government expends on public services, social welfare programs, infrastructure, and defense, among other areas.

Interest Rates

A charge, expressed in terms of a percentage of the principal, applied by a lender to a borrower for using its resources.

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