If Wages Adjust Fully to Price Increases in the Long

question 66

Multiple Choice

If wages adjust fully to price increases in the long run, fiscal policy will

• A) have no affect on the price level.
• B) have no affect on output.
• C) have no affect on either output or the price level.
• D) affect both output and the price level.

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a given confidence level.

Mean Difference

The average difference between each of two sets of numbers, often used in statistical analysis to compare two groups.

Math Scores

Quantitative assessments of individuals' proficiency in mathematics, typically resulting from tests or examinations.

Paired T-test

A statistical method used to compare the means of two related groups to determine if there is a significant difference between them.