A negative supply shock causes stagflation in the short run
a. True
b. False
A
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If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described as
A. inferior. B. normal. C. inelastic. D. elastic.
In its conduct of open market operations, the Fed now buys and sells
a. only U.S. government securities. b. only mortgage-backed securities issued by large investment banks. c. a wide range of assets including the stock shares of large banks, domestic automobile manufacturers, and high-technology business firms. d. a wide range of assets including corporate bonds and mortgage-backed securities.
In response to the atrocities committed during World War II, the _________ was adopted, and its principles remain relevant
Fill in the blank(s) with the appropriate word(s).
Given the following econometric model, wage = ?0+ ?1educ + u, can we eliminate the error term u entirely?
A. Yes, by including other observable factors, such as experience, that can also influence wage. ? B. Yes, by ensuring that everyone reports wage accurately and truthfully. C. No, because education is not always reported accurately. D. No, because many factors affect wage, that we cannot even list, let alone observe.