When analyzing the impact of government consumption and taxes in an open economy, we exclude transfer payments because:
a. they are not paid for by taxes.
b. in the aggregate, they do not generate a change in total spending on goods and services.
c. the sums are so large as to be incalculable.
d. the sums are so small as to be insignificant.
Ans: b. in the aggregate, they do not generate a change in total spending on goods and services.
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A) rose; rise B) rose; fall C) fell; rise D) fell; fall
The use of quarterly data to develop the forecasting model Yt = a +bYt?1 is an example of which forecasting technique?
a. Barometric forecasting b. Time-series forecasting c. Survey and opinion d. Econometric methods based on an understanding of the underlying economic variables involved e. Input-output analysis
Suppose Jerry and Joseph are two tenants sharing an apartment having a private lawn. They have agreed to share the costs of cleaning and maintaining it. Jerry would be considered an opportunist if he plants some flowers in this lawn at his own expense without consulting Joseph
Indicate whether the statement is true or false
Economists who accept the quantity theory of money believe that inflation is always and everywhere a monetary phenomenon.
Answer the following statement true (T) or false (F)