If the Economy Is in a Recession,the Inflation Rate Is

question 70

Multiple Choice

If the economy is in a recession,the inflation rate is ________ it would be at potential GDP.Other things equal,if the government implemented an expansionary fiscal policy,the inflation rate would ________.

• A) greater than; remain constant
• B) greater than; decrease
• C) less than; increase
• D) less than; remain constant

---

Definitions:

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.

Test Statistic

A value calculated from sample data during a hypothesis test to determine whether to reject the null hypothesis.

Randomly Selects

The process of choosing individuals or items from a population in such a way that each has an equal chance of being chosen.

Level of Significance

A threshold in statistical hypothesis testing, below which the null hypothesis is rejected.