A Randomized Controlled Study Is Done to Determine Whether or Not

question 7

Essay

A randomized controlled study is done to determine whether or not taking a specific herbal supplement causes stress levels to decrease. Sixty individuals are broken into two groups of size thirty. The first group receives a 10 mg dose of an herbal supplement each day while the second group receives a 10 mg dose of a sugar pill made to resemble the herbal supplement each day. After two months the stress levels of each group are measured. The 10 mg sugar pill is an example of a what?

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Definitions:

Multiplier Effect

The economic concept that an initial increase in spending leads to a greater increase in national income and total economic output.

Investment Accelerator

A concept where an increase in national income or gross domestic product leads to a proportionate increase in investment spending.

Aggregate-Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of the economy and the price level.

Monetary Policy

Actions by a central bank or other regulatory authority to influence a nation's money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.