The Great Recession Lasted Longer and Was Deeper Than the Average

question 162

Multiple Choice

The Great Recession lasted longer and was deeper than the average recession,in part,because

• A) oil-producing countries dramatically increased oil prices,causing very high inflation.
• B) there was a dramatic cut in military spending in the years leading up to the recession.
• C) the Federal Reserve refused to increase the money supply to stimulate aggregate demand.
• D) the government raised tax rates in an effort to balance the federal budget.
• E) there was a major financial crisis following the collapse of housing prices.

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Definitions:

Hypothesis Test

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.

Reject

In statistical analysis, to refuse the null hypothesis based on the evidence provided by the test statistic.

Type I Error

The error made when a true null hypothesis is incorrectly rejected.

Correct Decision

An accurate conclusion or choice made based on statistical analysis or reasoning.