The Cyclical Unemployment Rate Is Positive When

question 4

Multiple Choice

The cyclical unemployment rate is positive when

• A) there is a recessionary gap.
• B) there is an expansionary gap.
• C) the output gap equals zero.
• D) frictional unemployment equals structural unemployment.

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Definitions:

Type I Error

The error of rejecting a true null hypothesis, also known as a false positive.

Alpha

Often denoted as α, it is a significance level used in hypothesis testing, representing the probability of rejecting a true null hypothesis.

Alpha

A term often associated with the significance level in hypothesis testing, indicating the probability of rejecting a true null hypothesis.

Type II Error

The error occurs when the null hypothesis is not rejected when it is actually false.