Wage Contracts, Efficiency Wages, and the Minimum Wage Are Explanations

question 13

Multiple Choice

Wage contracts, efficiency wages, and the minimum wage are explanations for why

• A)competition results in price wars.
• B)wages tend to be inflexible downward.
• C)the aggregate demand curve slopes downward.
• D)there is little support for the existence of a real-balances effect.

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Definitions:

Expected Frequencies

The predicted counts of occurrences across different categories that one would expect if a hypothesis were true.

Chi-square Statistic

A measure used in statistics to evaluate the differences between observed and expected frequencies in categorical variables.

Expected Frequencies

In statistics, the numbers of observations or outcomes that one would expect to occur in each category if the null hypothesis were true.

Nonparametric Tests

Statistical tests not relying on data belonging to any particular distribution; often used when data does not meet the assumptions of parametric tests.