The economic theory that suggested an alternative to the rising unemployment and inflation that the static Phillips curve analysis could not explain was the:
a. new classical economic theory.
b. monetarist economic theory.
c. new Keynesian economic theory.
d. classical economic theory.
e. traditional Keynesian economic theory.
a
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According to the above table, the marginal propensity to consume is
A) 0.8. B) 0.75. C) 0.5. D) 0.6.
A scatter plot:
A) is the same as a pie chart. B) shows how a variable changes across time. C) shows the relationship between two variables at a point in time. D) represents the frequency of a variable being observed.
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
The decision about whether to use tax or spending mechanisms to implement expansionary fiscal policy is, in part, a ________________ decision rather than a purely economic one.
a. individual b. political c. local d. state