The Economy's Long-Run AS Curve Assumes That Wages and Other

question 100

Multiple Choice

The economy's long-run AS curve assumes that wages and other resource prices:

• A) eventually rise and fall to match upward or downward changes in the price level.
• B) are flexible upward but inflexible downward.
• C) rise and fall more rapidly than the price level.
• D) are relatively inflexible both upward and downward.

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Definitions:

Reactive Validity

The extent to which the act of measuring influences the measurement or behavior being observed.

Construct Validity

Construct validity is the extent to which a test measures what it claims to be measuring, reflecting the accuracy of an operationalization of a theoretical construct.

Split-half Reliability

This is a measure of consistency where a test is divided into two parts, and the scores from each half are compared to evaluate the test's reliability.

Test-retest Reliability

The reliability of a measurement determined by evaluating the same people on two separate occasions.