An incumbent announces it will significantly increase output in the next period, but only has contracts for the amount produced this period. The announcement is a
A) credible threat.
B) non-credible threat.
C) commitment.
D) mixed strategy.
B
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GLS involves
A) writing the model in differences and estimating it by OLS, using HAC standard errors. B) truncating the sample at both ends of the period, then estimating by OLS using HAC standard errors. C) checking the AIC rather than the BIC in choosing the maximum lag-length of the regressors. D) transforming the regression model so that the errors are homoskedastic and serially uncorrelated, and then estimating the transformed regression model by OLS.
The Condorcet paradox shows that there is no scheme for aggregating individual preferences into a valid set of social preferences
a. True b. False Indicate whether the statement is true or false
In the formula to calculate the real deficit, which of the following decreases the real deficit?
A. A lower inflation rate B. A larger nominal deficit C. A higher interest rate D. A larger debt
Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X and 28 units of Y is
A) impossible given the available resources. B) possible but leaves some resources less than fully used or misallocated. C) on the production possibilities frontier between points c and d. D) on the production possibilities frontier between points b and c.