If the Economy Shown in the Figure Begins at Point

question 150

Multiple Choice

If the economy shown in the figure begins at point C, an increase in consumer confidence leads to what changes in the short run?

• A) an increase in unemployment
• B) cost-push inflation
• C) a decline in tax revenue
• D) demand-pull inflation

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Definitions:

Level Of Significance

A different phrasing for the threshold probability used to decide when a hypothesis test's results are too unlikely under the null hypothesis, prompting its rejection.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain datasets or parameters.

Alternative Hypothesis

The hypothesis that there is a significant difference between specified populations, any observed difference being due to sampling or experimental error.

Confidence Interval

A range of values that is likely to contain a population parameter with a certain level of confidence.