Collective bargaining between unions and employers often lead:
A) to wages that are lower than what workers would have received at equilibrium.
B) to reduction in the unemployment rate.
C) to wages that are higher than what workers would have received at equilibrium.
D) to wages equal to what workers would have received at equilibrium.
C
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In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars ________ and the market moves to point such as ________
A) decreases; A B) decreases; E C) increases; D D) increases; C
One of the sources of error in the RMSFE in the AR(1) model is
A) the error in estimating the coefficients ?0 and ?1. B) due to measuring variables in logarithms. C) that the value of the explanatory variable is not known with certainty when making a forecast. D) the model only looks at the previous period's value of Y when the entire history should be taken into account.
When the quantity effect outweighs the price effect:
A. a price increase will cause a decrease in total revenue. B. a price increase will cause an increase in total revenue. C. a price decrease will cause a decrease in total revenue. D. None of these is true.
The restrictive monetary policy followed by the Fed in the early 1980s
a. reduced both unemployment and inflation. b. reduced inflation significantly, but at the cost of a severe recession. c. reduced unemployment significantly, but at the cost of higher inflation. d. raised both unemployment and inflation.