The equation u2t = 
0+1u2t-1 + vt is an autoregressive model in _____.
A. ut
B. u2t
C. vt
D. ut -1
Answer: B
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If investment increases ,which of the following happens?
i. Aggregate expenditure increases. ii. Real GDP increases. iii. Consumption expenditure decreases. A) i only B) ii and iii C) ii only D) i and ii E) i, ii, and iii
Using the standard 45° line diagram, how does an increase in investment spending effect the expenditure schedule?
A. It shifts the expenditure schedule downward. B. It shifts the expenditure schedule upward. C. It increases the slope of the expenditure schedule. D. It decreases the slope of the expenditure schedule.
Which group has the highest poverty rate from among these groups?
A. Children under 18 B. Persons over 65 C. White males D. Members of working class families
Exhibit 5-5 Gross domestic product data National income accountBillions ofdollars Depreciation$ 500 Net interest 2,000 Compensation of employees 6,000 Profits 1,500 Rental income 200 Indirect business taxes 800 Net exports 1,000 As shown in Exhibit 5-5, national income (NI) is:
A. $9,000 billion. B. $9,900 billion. C. $10,500 billion. D. $11,000 billion.