Which of the following could be a cause of consumption increasing?
A. Income decreases.
B. Interest rates increase.
C. Wealth increases.
D. Expected future income decreases.
C. Wealth increases.
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Departures from stationarity
A) jeopardize forecasts and inference based on time series regression. B) occur often in cross-sectional data. C) can be made to have less severe consequences by using log-log specifications. D) cannot be fixed.
In a labor negotiation, a mediator
a. represents the union rank-and-file members b. represents the management side c. is an impartial observer d. can call a strike e. can force both sides to agree to a contract
When society requires that firms reduce pollution, there is
a. a tradeoff because of reduced incomes to the firms' owners and workers. b. a tradeoff only if some firms are forced to close. c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements. d. no tradeoff, since everyone benefits from reduced pollution.
Both Economist Flores and Economist Jenkins have been monitoring the cucumber market and have noted that the equilibrium price of cucumbers and quantity of cucumbers sold have risen over the last year. Flores and Jenkins, however, disagree about why
this change has occurred. Flores holds that both supply and demand have increased and that the shift in demand has been greater than the shift in supply. Jenkins, however, argues that while demand has increased, supply has decreased and the shift in supply is greater than the shift in demand. Which economist offers the most feasible theory of why the equilibrium price and quantity of cucumbers have risen? Please provide the best answer for the statement.