Nominal GDP will always equal real GDP:
a. if prices are declining
b. in the base year.
c. if prices are increasing.
d. if the economy's total production does not change.
b
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Under the least squares assumptions (zero conditional mean for the error term, Xi and Yi being i.i.d., and Xi and ui having finite fourth moments), the OLS estimator for the slope and intercept
A) has an exact normal distribution for n > 15. B) is BLUE. C) has a normal distribution even in small samples. D) is unbiased.
Which of the following is part of the market structure for monopolistic competition?
A) barriers to entry B) a large number of firms compete C) each firm produces a differentiated product D) Both answers B and C are correct.
To counteract relative price changes, the government would implement:
A. monetary policy. B. policies that affect the supply and demand for all goods and services. C. polices that affect the supply and demand for a specific good. D. fiscal policy.
The Lorenz curve is best used to measure international competitiveness
a. True b. False Indicate whether the statement is true or false