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Why Do Governments Accept a Target Inflation Rate of Around

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Why do governments accept a target inflation rate of around 2 per cent?


Definitions:

One-tailed Hypothesis Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used when a specific direction for the data is predicted.

Level Of Significance

A threshold in hypothesis testing, below which the null hypothesis is rejected, indicating a statistically significant result.

Average Hourly Wage

The average earnings of employees per hour worked.

Computer Programmers

Professionals who write, debug, and maintain the code that allows software applications to function.

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