Most Economists Agree That an Automatic Mechanism Brings the Economy

question 163

Multiple Choice

Most economists agree that an automatic mechanism brings the economy back to potential GDP in the long run.In mid-2011,two years after the recession of 2007-2009 had ended,real GDP in the United States

• A)had returned to potential GDP.
• B)had exceeded potential GDP by 1.5 percent.
• C)remained more than 7 percent below potential GDP.
• D)was predicted to never return to potential GDP.

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Definitions:

Null Hypotheses

A statement that assumes there is no significant difference or effect in a population, and any observed difference is due to sampling or experimental error.

p-value

A measure used in statistical hypothesis testing to determine the significance of the observed data under a specific hypothesis, often testing if an effect exists.

Standard Deviation

A technique for quantifying the degree of variation or gap among a batch of numbers.

Random Sample

A random sample is a subset of individuals chosen from a larger population where each member has an equal chance of being selected, ensuring the representativeness of the sample.