Actual Inflation Would Be 2% When Expected Future Inflation Is

question 32

Multiple Choice

Actual inflation would be 2% when expected future inflation is ________,output-gap inflation is ________,and supply-shock inflation is ________.

• A)2%; 2%; 2%
• B)2%; 0%; -2%
• C)2%; 0%; 0%
• D)1%; 1%; 1%
• E)0%; 0%; -2%

---

Definitions:

Critical Value

A point on the test distribution that is compared to the test statistic to determine whether to reject the null hypothesis in hypothesis testing.

Type I Error

The mistaken dismissal of an accurate null hypothesis, commonly known as a "false positive" result.

Type II Error

In statistical hypothesis testing, the error that occurs when one fails to reject a false null hypothesis (a false negative).

Significant

Indicates that the results in statistical analysis are likely not due to chance, and there is a certain degree of reliability in the findings.