Which of the following is NOT an advantage of a correctly specified structural model?
A) Structural models may help us to more accurately predict the effect that monetary policy has on economic activity.
B) A structural model provides more pieces of evidence about monetary policy's effect on economic activity.
C) Structural models may allow economists to more accurately predict the impact institutional changes have on the link between monetary policy and income.
D) A structural model imposes no restrictions on the way monetary policy affects the economy.
D
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In a competitive market, an efficient allocation of resources is characterized by
a. a price greater than the marginal cost of production. b. the possibility of further mutually beneficial transactions. c. the largest possible sum of consumer and producer surplus. d. a value of consumer surplus equal to that of producer surplus.
The short-run supply curve of a perfectly competitive firm is: a. the average variable cost curve
b. the average total cost curve. c. the same as the demand curve. d. marginal cost above average variable cost.
Sales contracts between developed countries are usually written (invoiced) in the national currency of the exporter
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential