Sticky Wages Amplify Negative Shocks If

question 4

Multiple Choice

Sticky wages amplify negative shocks if:

• A) wages do not fall quickly when there are declines in economic activity.
• B) the initial shock occurs on the supply side of the economy.
• C) the initial shock occurs on the demand side of the economy.
• D) countries utilize the employment-at-will doctrine.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a high standard deviation indicates that the values are spread out over a wider range.

Coefficient Of Variation

The coefficient of variation is a standardized measure of dispersion of a probability distribution or frequency distribution, expressed as a percentage of the mean.

Empirical Rule

A statistical principle that indicates almost all values in a normal distribution lie within three standard deviations from the average.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.