If the Short-Run Phillips Curve Were Stable,which of the Following

question 36

Multiple Choice

If the short-run Phillips curve were stable,which of the following would be unusual?

• A)an increase in government spending and a fall in unemployment
• B)an increase in inflation and a decrease in output
• C)a decrease in the inflation rate and a rise in the unemployment rate
• D)a decrease in the money supply and a rise in the unemployment rate.

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Definitions:

P-Value

The probability measure indicating the likelihood of obtaining a test statistic at least as extreme as the one that was actually observed, assuming that the null hypothesis is true.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how spread out the data points are from the mean.

Null Hypothesis

A hypothesis used in statistics that proposes no significant difference or effect between specified populations, conditions, or variables.

Type II Error

A Type II Error occurs in hypothesis testing when a false null hypothesis is not rejected, meaning a real effect or difference was missed.