In the estimation of demand, the "identification problem" refers to
A) the problem of selecting the proper level of significance.
B) the problem of deciding whether to use time series or cross-sectional data.
C) the problem of separating out the effects of price on the quantity demanded when supply cannot be held constant.
D) the problem of having insufficient variation in prices.
C
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If in the market for oranges the supply has increased, then
A) the supply curve for oranges has shifted to the left. B) the supply curve for oranges has shifted to the right. C) there has been a movement upwards along the supply curve for oranges. D) there has been a movement downwards along the supply curve for oranges.
According to the National Bureau of Economic Research, the "two most reliable comprehensive estimates of aggregate domestic production" are ________ when dating the beginning and ending of recessions
A) the level of employment and monthly payroll data B) industrial production and wholesale and retail sales C) gross domestic product and gross domestic income D) real manufacturing production and the natural rate of unemployment
A key result of the equilibrium aggregate expenditure model is that it:
A. can explain why the economy should always be at natural rate GDP. B. illustrates how the government always moves us towards equilibrium GDP. C. shows how classical notion that the economy will always tend towards natural rate GDP is correct. D. can illustrate how an economy can be at an equilibrium that is below natural rate GDP.
A tax that fell very heavily on the rich and the upper middle class might shift the Lorenz curve from
A. J to K.
B. K to L.
C. L to K.
D. I to J.