If Two Economists Disagree About the Magnitude of Employment Effects

question 32

Multiple Choice

If two economists disagree about the magnitude of employment effects of a proposed change in government policy,the difference in opinion

• A) must be positive in nature
• B) must be normative in nature
• C) is more likely to be normative than positive
• D) is more likely to be positive than normative
• E) would be neither positive nor normative in nature

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Definitions:

Z Statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a data set.

Normal Distribution

Normal Distribution is a continuous probability distribution characterized by a symmetric, bell-shaped curve, where mean, median, and mode are equal.

Two-tailed Hypothesis Test

A statistical test in which the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values.

Test Statistic

A calculated value from sample data used to decide whether to reject the null hypothesis in hypothesis testing.