The Utility of Any Test Generally ________ as the Selection

question 76

Multiple Choice

The utility of any test generally ________ as the selection ratio gets lower.

• A)increases
• B)decreases
• C)remains the same
• D)becomes zero
• E)becomes negative

---

Definitions:

Expansionary Gap

A situation where the actual output in an economy exceeds the potential output due to high demand, often leading to inflationary pressures.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, given the current level of prices.

Actual Unemployment

The current level of unemployment in the economy, reflecting the number of people who are actively seeking employment but are without jobs.

Natural Rate

The level of economic activity, particularly unemployment or interest rates, that corresponds to the economy's long-term equilibrium without short-term cyclical fluctuations.