If the Full-Employment Level of Income in Figure 9

question 131

Multiple Choice

If the full-employment level of income in Figure 9.7 is $300 billion,there is

• A)A recessionary gap of $50 billion per year.
• B)A recessionary gap of $100 billion per year.
• C)An inflationary gap of $500 billion per year.
• D)Achievement of macro equilibrium.

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Definitions:

Rejection Rules

Guidelines used in hypothesis testing that determine the circumstances under which the null hypothesis should be rejected.

P-Value

Assuming the null hypothesis is applicable, it refers to the chance of recording test results that are at least as notable as the ones actually experienced.

Level Of Significance

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).