Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
a. an increase in the supply of electric cars so that the supply curve shifts rightward.
b. an increase in the supply of electric cars so that the supply curve shifts leftward.
c. a decrease in the supply of electric cars so that the supply curve shifts rightward.
d. a decrease in the supply of electric cars so that the supply curve shifts leftward.
a. an increase in the supply of electric cars so that the supply curve shifts rightward.
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An independent variable can be included in a regression model:?
A. ?when it affects y and is uncorrelated with all of the independent variables of interest. B. ?when it does not affect y and is uncorrelated with all of the independent variables of interest. C. ?when it affects y and is correlated with all of the independent variables of interest. D. ?when it does not affect y and is correlated with all of the independent variables of interest.
What are demand shocks? Give an example of a positive and a negative demand shock
What will be an ideal response?
Suppose that someone deposits $10,000 into a bank. Assuming a reserve requirement ratio of 20 percent, what will be the eventual increase in checking account balances?
What will be an ideal response?
Daniel was just laid off from his teaching job at the local high school due to state budget cuts resulting from the reduction in tax revenue during the recent economic downturn. Daniel would best be categorized as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.