The use of a dummy variable in regression analysis indicates
A) that a researcher does not really know what to include in the equation.
B) that a categorical variable is expected to have an impact on a dependent variable.
C) that insufficient data is available for the analysis.
D) the use of hypothetical data.
B
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Once wartime spending is under way and production is diverted away from household consumption items and private investment goods,
(a) real Gross National Product will likely fall. (b) the money supply will automatically increase. (c) inflation will likely rear its ugly head if productivity does not advance. (d) production and employment will fall.
The recognition time lag is the time that elapses between
A) when an economic problem manifests itself and it is officially acknowledged. B) the recognition of an economic problem and implementing policies to solve it. C) implementing policies to solve an economic problem and when the results of that policy can be measured. D) the beginning of the budgetary process and the final budget resolution.
When net taxes increase and government purchases decrease, _____
a. the price level will rise b. money supply must rise c. the aggregate demand curve shifts leftward d. output and employment increase e. the aggregate supply curve shifts leftward
The money supply curve is vertical if
A) banks and the Fed jointly determine the money supply. B) the Fed is able to completely determine the money supply. C) banks and households determine the money supply. D) households and the Fed jointly determine the money supply.