In a Two-Period SOE Model with Production, a Negative Total

question 18

Multiple Choice

In a two-period SOE model with production, a negative total factor productivity shock abroad

• A) increases foreign output and increases domestic output.
• B) decreases foreign output and decreases domestic output.
• C) increases foreign output and decreases domestic output.
• D) decreases foreign output and increases domestic output.
• E) decreases foreign output and leaves domestic output unchanged.

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Definitions:

Wilcoxon Signed Rank Test

The Wilcoxon signed rank test is a nonparametric statistical test used to compare the median of two related samples to determine if there are significant differences between them.

P-Value

The probability of observing a test statistic as extreme as, or more extreme than, the observed value under the assumption that the null hypothesis is true.

Kruskal-Wallis Test

A nonparametric statistical test that assesses whether there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.

Kruskal-Wallis H Test

A nonparametric statistical test designed to assess whether there's a significant difference between two or more groups related to an independent variable, with respect to a continuous or ordinal dependent variable.