In the real business cycle model, unemployment is ________
A) costless to individual workers
B) the result of higher productivity
C) voluntary
D) the result of higher wages
C
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Unemployment caused by people voluntarily leaving their jobs is classified as
A) part-time unemployment. B) cyclical unemployment. C) frictional unemployment. D) seasonal unemployment.
Which school of thought believes that real GDP always equals potential GDP?
A) only classical B) only Keynesian C) Monetarist D) both Keynesian and classical
Define net borrower, net lender, creditor nation, and debtor nation. Discuss the difference between a net borrower and a debtor nation
What will be an ideal response?
Assume that for the T = 2 time periods case, you have estimated a simple regression in changes model and found a statistically significant positive intercept. This implies
A) a negative mean change in the LHS variable in the absence of a change in the RHS variable since you subtract the earlier period from the later period B) that the panel estimation approach is flawed since differencing the data eliminates the constant (intercept) in a regression C) a positive mean change in the LHS variable in the absence of a change in the RHS variable D) that the RHS variable changed between the two subperiods