Demand-Pull Inflation

question 261

Multiple Choice

Demand-pull inflation

• A) occurs when total spending in the economy is excessive.
• B) is measured differently than cost-push inflation.
• C) can be present even during an economic depression.
• D) is also called "hyperinflation."

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Definitions:

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, commonly referred to as a "false positive" result.

Alpha (α)

A pre-specified significance level in hypothesis testing, representing the probability of making a Type I error, or falsely rejecting the null hypothesis.

Hypothesis Test

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.

Reject

In statistical analysis, to refuse the null hypothesis based on the evidence provided by the test statistic.