The Old Classical Macroeconomic Was Based on an Assumption of Price

question 24

Multiple Choice

The old classical macroeconomic was based on an assumption of price and wage ________,and thus an economy that ________.

• A)flexibility,promptly self-corrected
• B)flexibility,failed to self-correct promptly
• C)stickiness,promptly self-corrected
• D)stickiness,failed to self-correct promptly

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Definitions:

Type I Error

A statistical error that occurs when a true null hypothesis is incorrectly rejected.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected. It represents a miss or a failure to detect an effect or difference that actually exists.

Confidence Coefficient

The degree of certainty or probability that a specified parametric interval will contain the true value of an unknown population parameter.

Power of the Test

The probability that the test will correctly reject a false null hypothesis, essentially reflecting the sensitivity of the test.