Which of the following best describes what is meant by automatic stabilization policies?
A. policies that automatically help boost the economy when heading into an economic upturn
B. policies that require the direct action of the movement of the economy
C. policies that tend to dampen increases in aggregate demand during expansion and stimulate aggregate demand during recession without the requirement of political voting
D. any policy that acts on fiscal matters to improve economic performance
C. policies that tend to dampen increases in aggregate demand during expansion and stimulate aggregate
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In the circular flow model, there are two types of markets: the ________ market and the ________ market
A) goods; factor B) supply; demand C) households; firms D) producers; consumers E) service; goods
The reluctance to change the relative relationships between wage rates is called a
A) coordination failure. B) real rigidity. C) menu cost. D) macroeconomic externality.
Consumers who place a high value on a good are better off with pricing in the following order: 1)________; 2)________; 3)________
A) competitive market; perfect price discrimination; single-price monopoly B) competitive market; single-price monopoly; perfect price discrimination C) single-price monopoly; competitive market; perfect price discrimination D) Unable to determine.
One of your peers wants to analyze whether or not participating in varsity sports lowers or increases the GPA of students
She decides to collect data from 110 male and female students on their GPA and the number of hours they spend participating in varsity sports. The coefficient in the simple regression function turns out to be significantly negative, using the t-statistic and carrying out the appropriate hypothesis test. Upon reflection, she is concerned that she did not ask the students in her sample whether or not they were female or male. You point out to her that you are more concerned about the effect of omitted variables in her regression, such as the incoming SAT score of the students, and whether or not they are in a major from a high/low grading department. Elaborate on your argument. What will be an ideal response?