The Dynamic Aggregate Demand Curve Will Shift to the Right

question 106

Multiple Choice

The dynamic aggregate demand curve will shift to the right if there is a:

• A) tax cut.
• B) cut in government spending.
• C) decrease in the money supply.
• D) cut in oil prices when the cartel falls apart.

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Definitions:

Regression Slope

Indicates the steepness and direction of the linear relationship between two variables on a regression plot.

Variance

A calculation of how spread out a data set is, determined by the mean of the squared deviations from the average.

Least Squares Estimates

A statistical method used to determine the line of best fit by minimizing the sum of squares of the errors between observed and predicted values.

Slope

In mathematics and statistics, it represents the rate at which a line inclines or declines, showing the change in the dependent variable for a unit change in the independent variable.