Which of the Following Statements Is True

question 118

Multiple Choice

Which of the following statements is true?

• A) A decrease in wage rates will shift the SRAS curve to the left.
• B) An adverse supply shock will shift the SRAS curve to the left.
• C) A fall in the prices of nonlabor inputs will shift the SRAS curve to the left.
• D) An increase in labor productivity will shift the SRAS curve to the left.
• E) c and d

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Definitions:

Indicator Variable

A variable that takes on values of 0 or 1 to indicate the absence or presence of a categorical effect that may influence dependent variables.

Seasonal Index

Seasonal index refers to a numerical value that is assigned to specific time intervals to measure the seasonal pattern or variation in a data set over a period.

Deseasonalized

Deseasonalized data refers to the removal of seasonal effects from a time series to better identify trends and other underlying patterns.

Seasonal Index

A coefficient that modifies data to account for seasonal effects, facilitating more accurate trend analysis over time.