A Recessionary Gap Means That Short- Run Macroeconomic Equilibrium GDP

question 53

Multiple Choice

A recessionary gap means that short- run macroeconomic equilibrium GDP

• A) equals full- employment GDP.
• B) is more than full- employment GDP.
• C) is less than full- employment GDP.
• D) may be less than, more than, or the same as full- employment GDP depending on the level of potential GDP.

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Definitions:

Resamples

The practice of drawing repeated samples from a given dataset, often with replacement, to estimate the precision of sample statistics.

Permutation Test

A non-parametric statistical test that assesses the significance of a difference between groups by computing all possible outcomes under rearrangements of labels.

P-value

The probability of obtaining test results at least as extreme as the results observed, under the assumption that the null hypothesis is true.

Test Statistic

A calculated value used in statistical hypothesis testing to determine whether to reject the null hypothesis.