The Amount of Time It Takes a Given Policy Action

question 16

Multiple Choice

The amount of time it takes a given policy action to bring about a change in the state of the economy is called the:

• A) outside lag.
• B) inside lag.
• C) stabilization lag.
• D) external lag.

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Definitions:

Chi-square Test of Independence

A statistical test used to determine if there is a significant association between two categorical variables.

Test Statistic

A standardized value used in statistical hypothesis testing to decide whether to reject the null hypothesis.

Critical Value

A statistical threshold value used in hypothesis testing to determine whether to reject the null hypothesis, based on the desired level of significance.

Contingency Table

A table used in statistics to show the frequency distribution of variables, and analyze the relationship between categorical variables.