If Wage Rigidity Holds the Real Wage Above the Equilibrium

question 22

Multiple Choice

If wage rigidity holds the real wage above the equilibrium level, an increase in the supply of labour will _____ the number unemployed.

• A)increase
• B)decrease
• C)not change
• D)possibly increase, decrease, or leave unchanged

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Definitions:

Wilcoxon Rank Test

A non-parametric test used to compare two paired groups to determine whether their population mean ranks differ.

Independent Samples

Groups of data in which the members of one group are not related or matched to the members of the other group(s).

Nonparametric Tests

Statistical tests used for data that does not necessarily meet the assumptions required for parametric tests, often used when data is not normally distributed.

Independent Samples

Two or more groups of samples that are not related or paired in any way, ensuring the observations in one sample do not influence the observations in another.