The McNemar Test May Only Be Used When the Contingency

question 7

Multiple Choice

The McNemar test may only be used when the contingency table is

• A) 1 by k
• B) 2 by 2
• C) 2 by 3
• D) none of these, since the McNemar test may be applied to contingency tables

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Definitions:

Sticky Prices

Refers to the resistance of prices to change, despite shifts in the broader economy or a product's supply and demand.

Price Level

An index or average that reflects the overall price of goods and services in an economy at a given time, often used to measure inflation or deflation.

Long-Run Aggregate Supply

The Long-Run Aggregate Supply represents the total production of goods and services in an economy at full employment, unaffected by short-term fluctuations.

Recessionary Gap

Occurs when the actual output of an economy is less than the potential output, indicating underutilized resources.