Refer to Figure 18.4 for the Following Questions

question 132

Multiple Choice

Refer to Figure 18.4 for the following questions.
Figure 18.4
-In Figure 18.4,if fiscal policy is successful at moving the economy from point B to equilibrium at potential GDP,which of the following will occur?

• A) The price level will rise
• B) Deflation will occur
• C) Unemployment will fall
• D) Unemployment will rise

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Definitions:

Rejection Regions

The portion of a sampling distribution that, if a test statistic falls within, leads to the rejection of the null hypothesis.

Testing Conditions

The specific circumstances or requirements under which a test or experiment is conducted.

Assumptions of Normality

The prerequisite that a dataset should be normally distributed for certain statistical tests to be applicable.

Amount of Time

Refers to the duration or length of a specific interval or period measured in units such as seconds, minutes, hours, or years.