Use the Following to Answer Questions

question 83

Multiple Choice

Use the following to answer questions:
Figure: Policy Alternatives
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. Suppose that the initial equilibrium is at real GDP level Y₁ and price level P₂ in panel (a) . At real GDP level Y₁ there is:

• A) an inflationary gap.
• B) a recessionary gap.
• C) no gap.
• D) long-run equilibrium.

Recognize the importance of sample size and design in assessing statistical tests.

Understand the principles and application of chi-square tests of independence and goodness-of-fit tests.

Understand the use of statistical tests to compare observed frequencies with expected frequencies or proportions.

Understand and apply hypothesis testing for proportions.