To compare the conclusions of a model with what actually happens, historical data are entered into the model as ________
A) endogenous variables
B) exogenous variables
C) equations
D) predictions
E) policies
B
You might also like to view...
Rent seeking through lobbying
A) reduces deadweight loss. B) uses up resources that result in additional costs to society. C) results in perfect price discrimination. D) results in perfectly competitive industries.
An expansion of the money supply, ceteris paribus, will
a. raise interest rates b. reduce investment demand c. contract aggregate demand d. lower prices e. increase investment in the economy
Which of the following most accurately indicates the political incentive to spend and/or tax?
a. Politicians will find tax increases more attractive than increases in government expenditures. b. Voters will generally support higher taxes in order to eliminate budget deficits. c. Politicians are rewarded for raising taxes and punished for providing programs that benefit their constituents. d. Politicians are rewarded for providing programs that benefit their constituents and punished for raising taxes.
In 2005, Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices. Three years later, once the refining capacity was restored, these prices came back
down. The restoration of refining capacity should A) shift the short-run aggregate supply curve to the left. B) shift the short-run aggregate supply curve to the right. C) move the economy up along a stationary short-run aggregate supply curve. D) move the economy down along a stationary short-run aggregate supply curve.