If the Public Believes That the Commitment to a Nominal

question 80

Multiple Choice

If the public believes that the commitment to a nominal anchor is not credible,the effect of a positive aggregate demand shock is for ________.

• A)short-run aggregate supply to shift down
• B)short-run aggregate supply to remain unchanged
• C)short-run aggregate supply to shift up
• D)inflation,but not economic activity,to increase

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes there is no significant difference or effect, serving as a default position until evidence suggests otherwise.

Independent Samples

Independent samples refer to sets of data collected from distinct, non-overlapping groups or populations, where the performance or measurement in one group does not influence the other.

Population Means

The average values of a particular variable for all individuals within a population.

Pooled-variances T-test

A statistical test applied to compare the means of two independent samples, especially when the two samples have the same variance.