During the Recession of 2007-2009,the U

question 38

Essay

During the recession of 2007-2009,the U.S.economy was experiencing a decrease in home prices and consumer wealth,a credit crisis in the financial markets,and declining consumer and business confidence.What components of aggregate demand were affected and what was the impact on real output? What were the policy options?

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Definitions:

Significance Level

Another term for level of significance, indicating the critical probability level at which the results of a statistical test are deemed significant.

Null Hypothesis

A statement or assumption that there is no significant difference or effect, tested against an alternative hypothesis in statistical analysis.

Null Hypothesis

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

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis, often referred to as a "false negative" finding.