Employees at the University Have Negotiated a 5 Percent Increase

question 24

Multiple Choice

Employees at the university have negotiated a 5 percent increase in wages for the next year,based on their inflation expectations.If inflation is actually 4 percent over the next year,which of the following will occur?

• A)Unemployment of university employees will fall.
• B)Real wages for university employees will rise.
• C)Inflation will be 5 percent the following year.
• D)The decrease in inflation is expected.

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Definitions:

Correlated

Correlated refers to a statistical relationship between two or more variables where a change in one is associated with a change in another, indicating a possible connection or causality.

Sampling Bias

A statistical bias that occurs when a sample is collected in such a way that some members of the intended population are less likely to be included than others, resulting in a non-representative sample.

Double Blind Procedure

A double-blind procedure is a research method in which both the participants and the researchers are unaware of who has been assigned to the control or experimental group, reducing bias.

Placebo Effect

A phenomenon wherein a patient's symptoms can improve after receiving a treatment with no therapeutic value, purely because of the individual's belief in the treatment's efficacy.