If two alternative economic models are offered, other things equal, we would
a. tend to pick the one with the lowest R2.
b. select the model that is the most expensive to estimate.
c. pick the model that was the most complex.
d. select the model that gave the most accurate forecasts
e. all of the above
d
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"Comparative advantage" is defined as a situation in which one person can produce
A) more of all goods than another person. B) more of a good than another person. C) a good for a lower dollar cost than another person. D) a good for a lower opportunity cost than another person. E) all goods for lower opportunity costs than another person.
In a typical year, ________ new firms open in the United States
A) more than 400,000 B) more than 1 million C) approximately 125,000 D) less than 200,000
How is the AA schedule derived?
A) The AA schedule has a positive slope because an increase in output leads to a depreciation of the currency. B) The AA schedule has a negative slope because an increase in output leads to a decrease in the domestic interest rate. C) The AA schedule has a negative slope because an increase in output leads to an increase in the domestic interest rate and a domestic currency appreciation. D) The AA schedule has a positive slope because an increase in the money supply leads to an increase in the domestic interest rate. E) The AA schedule has a positive slope because a decrease in output leads to a depreciation of the currency.
Changes in the capital stock occur ________, and changes in the amount of labor that firms employ occur ________
A) quickly; quickly B) slowly; slowly C) slowly; quickly D) quickly; slowly