The adverse supply shocks experienced during the 1970s strengthened the Philips Curve relationship between inflation and unemployment
Indicate whether the statement is true or false
false
You might also like to view...
In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit
Indicate whether the statement is true or false
In the early 1980s, many savings-and-loan associations pretended to be solvent by
A) valuing their assets on a historical cost basis. B) underreporting the amount of their liabilities. C) including the impact of high interest rates on the value of their assets. D) counting "goodwill" as an asset.
Quotas, such as limiting the amount of residential water use during a drought, restricts an individual's preference set and
A) reduces utility because an individual cannot consume as much as they would without the quota. B) increases utility because quotas restrict output and raise profits for the water company. C) reduces utility because an individual is forced to substitute to other goods. D) does not affect overall utility.
In the case of exact identification
A) you can use the J-statistic in a test of overidentifying restrictions. B) you cannot use TSLS for estimation purposes. C) you must rely on your personal knowledge of the empirical problem at hand to assess whether the instruments are exogenous. D) OLS and TSLS yield the same estimate.