If the Natural Rate of Unemployment _____, the Nonaccelerating Inflation

question 129

Multiple Choice

If the natural rate of unemployment _____, the nonaccelerating inflation rate of unemployment _____, and the long-run Phillips curve shifts to the left.

• A) falls; falls
• B) rises; rises
• C) falls; rises
• D) rises; falls

---

Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance in the given set of observations, often denoted as H0 and used as a default hypothesis to be tested.

Significance Level

A threshold chosen by the researcher which denotes the probability of rejecting the null hypothesis when it is actually true, often denoted as alpha.

SRS

A simple random sample, which is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Significance Test

A statistical procedure for testing a hypothesis to determine if there is enough evidence to reject the null hypothesis.