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Explain What Effect an Increase in Future Expected Output Will

question 66

Essay

Explain what effect an increase in future expected output will have on the IS curve and LM curve in the current period.


Definitions:

Null Hypothesis

A statement asserting there is no significant difference or effect, which researchers aim to test against alternative hypotheses.

Significance Tests

Statistical tests used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds for the entire population.

Alternative Hypothesis

A statement that contradicts the null hypothesis and is tested to determine if the null hypothesis can be rejected.

SRS

Simple Random Sample, which is a subset of individuals chosen from a larger set where each individual has the same probability of being selected.

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