In the Short Run ________

question 61

Multiple Choice

In the short run ________.

• A)inflation is negatively related to the output gap
• B)if output rises above its potential level,the unemployment rate falls and firms will lower wages
• C)if the labor market tightens,firms will raise prices more rapidly to keep up with upward wage pressures and inflation will ensue
• D)all of the above
• E)none of the above

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Definitions:

Sample Means

The average value obtained from a sample, which is a subset of a larger population.

Population Mean

The average value of a given set of numbers in a population.

Null Hypothesis

In hypothesis testing, it's the hypothesis that assumes no effect or no difference and serves as the basis for testing statistical significance.

Means

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