When There Is a Decrease in the Unemployment Rate

question 134

Multiple Choice

When there is a decrease in the unemployment rate,

• A)The economy moves closer to the production possibilities curve.
• B)The production possibilities curve shifts outward.
• C)The production possibilities curve shifts inward.
• D)There is a movement along the production possibilities curve.

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" finding.

Null Hypothesis

A hypothesis used in statistics that proposes no significant difference or effect, serving as a default position until evidence suggests otherwise.