Which of the Following Pairs Helps Explain Why Self-Correction from a Decline

question 130

Multiple Choice

Which of the following pairs helps explain why self-correction from a decline in aggregate demand in the economy may be slow rather than rapid?

• A)theory of compensation wage differentials; theory of derived demand for labor
• B)efficiency wage theory; insider-outsider theory
• C)insider-outsider theory; principle-agent problem
• D)externalities; efficiency wage theory

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Definitions:

Z-test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.

µ = 15

Represents the mean of a population is equal to 15.

Z-statistic

A measure used in statistics to quantify the deviation of a data point or a group of data points from the mean, expressed in terms of standard deviations.

Two-tailed Test

A statistical test that allows for the exploration of relationships in both directions, enabling the detection of significant differences regardless of the direction.