In Which Case Would We Choose to a One-Sided Alternative

question 12

Multiple Choice

In which case would we choose to a one-sided alternative hypothesis over a two-sided alternative hypothesis?

• A) It does not matter what type of alternative hypothesis we specify.
• B) Choose a one sided alternative hypothesis when the theory and literature suggests either that the coefficient should be greater than zero or that the coefficient should be less than zero.
• C) We choose a one sided alternative hypothesis when we have a large sample size.
• D) We choose a one sided alternative hypothesis when we specify a low (0.01) alpha.

Understand the concept of crowding out and its effect on fiscal policy effectiveness.

Explain the Marginal Propensity to Consume (MPC) and its role in determining the multiplier effect.

Evaluate the effectiveness of active stabilization policies in addressing unemployment and inflation.

Recognize the significance of automatic stabilizers in the economy and their impact on output and employment.

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Definitions:

Stressful Circumstances

Situations or conditions that cause significant strain and pressure, potentially leading to physical or emotional stress.

Childhood Abuse

Experiences of physical, emotional, sexual abuse or neglect encountered by an individual during their childhood.

Adult Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and loss of interest, specifically in the adult population.

Social-cognitive Perspective

An approach in psychology emphasizing the importance of observational learning, self-efficacy, situational influences, and cognitive processes in the understanding of behavior.