If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the
a. worst recession occurs when output expands most rapidly.
b. slowest inflation occurs when output expands most rapidly.
c. slowest economic growth occurs when output grows most rapidly.
d. most rapid inflation occurs when output expands most rapidly.
d
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A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should
A. hire more than five workers. B. not hire a fourth worker. C. hire four workers. D. hire five workers.
An appreciation of the U.S. dollar
A) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports. B) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports. C) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports. D) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.
Problems caused by stochastic trends include all of the following with the exception of
A) the estimator of an AR(1) is biased towards zero if it's true value is one. B) the model can no longer be estimated by OLS. C) t-statistics on regression coefficients can have a nonnormal distribution, even in large samples. D) the presence of spurious regression..
According to the text, Singapore and Hong Kong are classified as industrially advanced countries (IACs)
a. True b. False Indicate whether the statement is true or false