Which of These Changes Is Observed in an Economy When

question 110

Multiple Choice

Which of these changes is observed in an economy when a recessionary gap is closed in the long run?

• A)An increase in the inflation rate and a decrease in the unemployment rate
• B)An increase in the level of output and a decrease in the price level
• C)An increase in both the rate of output and the price level
• D)A decrease in both the rate of output and the price level
• E)A decrease in the inflation rate and an increase in the unemployment rate

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Definitions:

Null Hypothesis

The default hypothesis that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Directional Alternative

A hypothesis that outlines the anticipated direction in the variation or association among variables.

T-statistic

A T-statistic is used in statistical testing to determine the significance of the difference between the means of two groups relative to the spread or variability of their scores.

Means

Statistical measures that represent the average value in a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.