Which of the Following Statement Regarding Aggregate Supply Is CORRECT

question 248

Multiple Choice

Which of the following statement regarding aggregate supply is CORRECT?

• A) Moving along the long-run aggregate supply curve, both the price level and the money wage rate change by the same percentage.
• B) Moving along the short-run aggregate supply curve, both the price level and the money wage rate change by the same percentage.
• C) Moving along the long-run aggregate supply curve, the money wage rate changes but the price level is constant.
• D) Moving along the short-run aggregate supply curve, the money wage rate changes but the price level is constant.

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Definitions:

Wilcoxon Signed Rank Test

A statistical test without assumption of underlying data distribution, designed to evaluate differences in the mean ranks of two paired samples, matched observations, or repeated measures within the same sample to determine variations in their population means.

Normal Approximation

A method used to approximate the distribution of a sum of independent random variables using the normal distribution, under certain conditions.

Continuity Correction

An adjustment made when approximating a discrete distribution with a continuous one, particularly relevant when making inferences about binomial distribution using normal approximation.

Null Hypothesis

A statement in statistics that suggests there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.