In the Long Run ________

question 3

Multiple Choice

In the long run ________.

• A)the aggregate supply is vertical with respect to unemployment
• B)the Phillips curve is vertical at a given level of expected inflation
• C)the economy reaches the potential output level consistent with the natural rate of unemployment
• D)all of the above
• E)none of the above

Conduct hypothesis testing using the Wilcoxon Signed-Rank test and conclude based on the test results.

Recognize the conditions under which the Wilcoxon Signed-Rank test is appropriate to use.

Understand the treatment of tied values in the Wilcoxon Signed-Rank test.

Apply the sign test and interpret its results.

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Definitions:

Fixed

Pertaining to costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Mixed

Pertaining to costs or variables that have both fixed and variable components, changing with the level of activity but not directly proportional to it.

Selling Price

The cost at which consumers can purchase a product or service.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much revenue is contributing to covering fixed expenses and generating profit.