When the Economy Is Hit by a Negative Demand Shock

question 55

Multiple Choice

When the economy is hit by a negative demand shock and the central bank pursues policies to increase aggregate demand to its initial level,then

• A)inflation will be lower.
• B)output will be at its potential.
• C)output will be lower.
• D)inflation will be unchanged.
• E)both B and D.

Distinguish between paired and independent samples and select the appropriate statistical test.

Interpret the results of statistical tests, including confidence intervals and hypothesis tests, in the context of the research question.

Design experiments and observational studies to compare two groups using paired and independent samples.

Evaluate the assumptions of statistical tests and the appropriateness of test selection based on the data structure.