Unemployment Would Decline in the Face of Rising Productivity If

question 2

Multiple Choice

Unemployment would decline in the face of rising productivity if:

• A)real wages only increased sluggishly.
• B)real wages adjusted instantaneously.
• C)labor supply remained fixed in the face of increases in labor demand.
• D)the demand for labor did not respond to the rising productivity.

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Definitions:

Mean Value

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.

Model

A representation or abstraction of a process, system, or object that aims to explain, predict, or simulate real-world behavior, phenomena, or outcomes.

Regression Analysis

A set of statistical processes for estimating the relationships among variables.

Confidence Interval

A range of values, derived from the statistics of observed data, that is likely to contain the value of an unknown population parameter.