Which of the following is assumed in time series regression?
A. There is no perfect collinearity between the explanatory variables.
B. The explanatory variables are contemporaneously endogenous.
C. The error terms are contemporaneously heteroskedastic.
D. The explanatory variables cannot have temporal ordering.
Answer: A
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Predatory pricing is defined to be
A) collusive pricing. B) behavior designed to drive out current competition. C) cooperative behavior between two firms with monopoly power. D) collusion.
The forces of supply and demand assure that
a. demand curves and supply curves tend to shift to the right as time goes by. b. the price of a good will eventually rise in response to an excess demand for that good. c. when the supply curve for a good shifts, the demand curve for that good shifts in response. d. the equilibrium price of a good will be rising more often than it will be falling.
Under what conditions will the inflationary impact of an expansionary monetary policy be the largest?
A. When equilibrium real GDP is at potential real GDP. B. When there is a recessionary gap. C. When unemployment rates are high and there is substantial excess industrial capacity. D. When real GDP is falling and the price level is decreasing.
In macroeconomics, the point at which planned aggregate expenditures equals aggregate output
A. is where saving is negative. B. is only achieved if net exports are zero. C. only occurs when the MPC is equal to the MPS. D. is the equilibrium point.