According to the AS-AD Model, If Oil Prices Fall, Then

question 46

True/False

According to the AS-AD model, if oil prices fall, then equilibrium output and the equilibrium prices rise in the short run.

---

Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is true, often denoted by alpha, and used as a threshold to interpret the p-value in hypothesis testing.

Confidence Interval

A range of values derived from sample data that is believed to contain the true population parameter with a certain level of confidence.

P-value

A statistical measure that helps in determining the significance of the results from a test, indicating the probability of observing results at least as extreme as those seen, under the assumption that the null hypothesis is true.

Chi-square Distribution

The Chi-square distribution is a probability distribution used in statistical significance tests, particularly suitable for categorical data.