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The Simple Phillips Curve Relies on the Assumption That the Business

question 49

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The simple Phillips curve relies on the assumption that the business cycle is caused by _____ shocks:


Definitions:

P-Value

The likelihood of achieving outcomes in a test that are at least as significant as those observed, under the assumption that the null hypothesis holds true.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical testing.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a threshold for determining the statistical significance.

Rejection Region

The range of values for which we reject the null hypothesis in hypothesis testing.

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