When Wages and Prices Are Completely Flexible ________

question 82

Multiple Choice

When wages and prices are completely flexible ________.

• A)inflation is determined by expected inflation and price shocks
• B)labor hoarding occurs
• C)unemployment is disconnected from the real economy
• D)all of the above
• E)none of the above

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Definitions:

Null Hypothesis

In hypothesis testing, it is the default hypothesis that there is no effect or no difference, and it is subject to test for possible rejection.

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Sign Test

A non-parametric test that assesses the median of a statistical population by comparing the number of positive vs. negative changes from a median value.

Matched Pairs

A study design where each participant is paired with another participant who has similar characteristics, but receives a different treatment.