What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?
A) The aggregate expenditure model examines monetary policy, whereas the aggregate demand/aggregate supply model does not.
B) The aggregate demand/aggregate supply model assumes that the price level is fixed.
C) The aggregate expenditure model assumes that real GDP is fixed.
D) The aggregate expenditure model assumes that the price level is fixed.
E) Monetary and real factors interact in the aggregate demand/aggregate supply model.
D
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Who loses and who gains from the minimum wage?
A) Losers are all workers and gainers are all firms. B) Losers are all firms and gainers are all workers. C) Losers are all firms and some workers, while gainers are other workers. D) Gainers are some firms and all workers, while losers are some firms. E) Gainers are some firms and some workers, while losers are other firms and other workers.
Stationarity means that the
A) error terms are not correlated. B) probability distribution of the time series variable does not change over time. C) time series has a unit root. D) forecasts remain within 1.96 standard deviation outside the sample period.
What are the three economic uses of time?
a. Social work, nonmarket work, and leisure b. Nonmarket work, voluntary service, and leisure c. Acquiring skills, voluntary service, and social service d. Market work, nonmarket work, and leisure
The supply curve in a market is vertical instead of upsloping whenever:
A. All buyers are willing to pay only one price for the item B. Sellers have no flexibility in setting the price of the item C. Buyers want to buy a fixed quantity regardless of price D. Sellers have a fixed quantity of the item for sale