If Actual Inflation Is Greater Than Expected Inflation

question 257

Multiple Choice

If actual inflation is greater than expected inflation

• A)real wages rise.
• B)real wages fall.
• C)the Phillips curve is a vertical line.
• D)the unemployment rate rises.

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Definitions:

Interval

A range of numbers between two set points, often used in mathematics and statistics to specify subsets of the real number line.

Chi-Squared Distribution

A distribution that represents the distribution of the sum of the squares of k independent standard normal random variables.

P-Value

The chance of encountering test outcomes as significant as or more than what is actually seen, assuming that the null hypothesis holds.

Population Locations

The geographically-based positions or areas where members of a specific population are found or located.