The New Growth Theory That Arose in the Late 1980s

question 51

Multiple Choice

The new growth theory that arose in the late 1980s has been described as ________ because it treats technological change as ________.

• A)exogenous,random unpredictable shocks
• B)exogenous,generated by market incentives
• C)endogenous,random unpredictable shocks
• D)endogenous,generated by market incentives

Differentiate between IFRS and U.S. GAAP in terms of asset revaluation, depreciation, and exchanges of plant assets.

Understand the key characteristics and differences of the U.S. economy in the 1920s and 1990s.

Recognize factors contributing to economic recessions and expansions in U.S. history.

Identify the impacts of technological progress on the U.S. economy.

---

Definitions:

Type I Error

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

Type II Error

Occurs when a statistical test fails to reject a false null hypothesis, also known as a false negative.

Null Hypothesis

A hypothesis that states there is no statistical significance between the two variables in the hypothesis. It posits no effect or no difference as a default stance to be tested against.

Alternative Hypothesis

A statement that contradicts the null hypothesis and proposes that there is a statistically significant relationship between two variables.