If Productivity Increases by 5 Percent but Wages Increase by 2

question 127

Multiple Choice

If productivity increases by 5 percent but wages increase by 2 percent, then it is most likely that the price level will:

• A)rise by 3 percent.
• B)fall by 3 percent.
• C)rise by 7 percent.
• D)fall by 7 percent.

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Definitions:

Net Weight

The weight of a product without any packaging or container, essentially the weight of the goods alone.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual data points differ from the mean of the data set.

Significance Level

The threshold used in statistics to determine the probability of rejecting a null hypothesis when it is true.

Sample Mean

The average of a set of observations or data points, calculated by summing them all up and dividing by the number of observations.