In practice, the most difficult aspect of feasible WLS estimation is
A) knowing the functional form of the conditional variance.
B) applying the WLS rather than the OLS formula.
C) finding an econometric package that actually calculates WLS.
D) applying WLS when you have a log-log functional form.
Answer: A
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Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to E. C) D to C. D) C to D. E) E to A.
The level of output at which marginal revenue equals zero is also the level of output at which a. total revenue is zero
b. profit is maximized. c. total revenue is maximized. d. total revenue is declining.
Temperature is a measure that changes from time to time and is therefore an example of a(n)
A. model. B. causality. C. variable. D. empirical measure.
Describe the characteristics of fiscal policy from 2009 to 2012. Was it expansionary or contraction?
What will be an ideal response?