Which of the Following Mechanisms Helps Output to Return to Potential

question 45

Multiple Choice

Which of the following mechanisms helps output to return to potential after a supply shock?

• A) A change in the nominal wage
• B) Changes in business decision making strategies
• C) Changes in the capital stock
• D) The rigidity of the price level
• E) Changes in inventories.

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Definitions:

T-Tests

Statistical tests used to compare the means of two groups to see if there is a significant difference between them.

Type I Error

A Type I Error occurs when a true null hypothesis is incorrectly rejected, also known as a "false positive."

Statistical Power

Statistical power refers to the probability that a statistical test will correctly reject a false null hypothesis, effectively detecting an effect when there is one.

Detecting An Effect

The process of identifying whether a particular treatment, condition, or variable has a statistically significant impact in an experiment or study.