Relatively Small Annual Changes in Factor Productivity Are

question 6

Multiple Choice

Relatively small annual changes in factor productivity are

• A)thought to be an important cause of long- run economic growth.
• B)always cancelled out by changes in the growth in factor supplies.
• C)the only important source of changes in potential GDP.
• D)easy to calculate across many industries.
• E)not important to long- run growth but are the dominant source of short- run changes in GDP.

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Definitions:

Auto Manufacturers

Companies involved in the design, production, marketing, and selling of motor vehicles.

Critical Value

A threshold in hypothesis testing that determines the boundary for rejecting the null hypothesis.

P-value

The probability of obtaining an observed value of a test statistic, or more extreme, assuming that the null hypothesis is true.

Level of Significance

A threshold in hypothesis testing that determines the probability of rejecting a null hypothesis when it is actually true, often denoted by alpha.