What Are "Coordination Failures," and Why Are They Important for Interpreting

question 73

Essay

What are "coordination failures," and why are they important for interpreting the macro economy?

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no effect or no difference in an experiment or study, serving as the default assumption to be tested.

Probability

Probability is the measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Statistic

A single measure, calculated from sample data, used to summarize a characteristic of the sample.

Critical Value

A point on the scale of a test statistic beyond which the null hypothesis is rejected, often determined by the desired significance level.