Author Question: If a large number of laborers shift from fixed-wage contracts to wages that depend on the cost of ... (Read 164 times)

roselinechinyere27m · **on:** Jun 30, 2018

If a large number of laborers shift from fixed-wage contracts to wages that depend on the cost of living adjustments, the long-run aggregate supply curve for the economy will become relatively steeper.
a. True
b. False
Indicate whether the statement is true or false

Question 2

What is the difference between a hypothesis and a theory?

blakcmamba · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

True

Answer to Question 2

A hypothesis about behavior is the first step in developing and constructing a theory. A hypothesis is testable and makes a prediction about behavior in response to changed circumstances. If a hypothesis is shown to be consistent with real-world data, it can be tentatively accepted as an economic theory.