An Inflationary Gap Is Occurs When

question 101

Multiple Choice

An inflationary gap is occurs when

• A) real GDP is less than potential GDP.
• B) real GDP exceeds potential GDP.
• C) real GDP equals potential GDP.
• D) the economy is at full employment.

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Definitions:

Reject The Hypothesis

The decision in hypothesis testing that the evidence is sufficient to conclude the hypothesis is not consistent with the data.

Type II Error

A statistical term referring to the error that occurs when a false null hypothesis fails to be rejected.

Null Hypothesis

A statement that assumes no effect or no difference in a statistical hypothesis test.

Intervention Group

The group in an experimental study that receives the treatment or intervention being tested, as opposed to a control group.