The Argument That Econometric Policy Evaluation Is Likely to Be

question 9

Multiple Choice

The argument that econometric policy evaluation is likely to be misleading if policymakers assume stable economic relationships is known as

• A)the monetarist revolution.
• B)the Lucas critique.
• C)public choice theory.
• D)new Keynesian theory.

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Definitions:

Standard Error

Describes a statistical measure that estimates the accuracy with which a sample represents a population.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it's determined by the significance level.

Null Hypothesis

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

Null Hypothesis

A statement in statistical hypothesis testing that assumes no effect or no difference between phenomena or populations.