If higher prices cause buyers to shop at discount stores, the CPI has
A) a new goods bias.
B) a quality change bias.
C) a commodity substitution bias.
D) an outlet substitution bias.
E) a discounted bias.
D
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The Keynesian range of the aggregate supply curve applies when the economy is at or near full employment
a. True b. False Indicate whether the statement is true or false
If nominal GDP increased from $4,500 billion in 2010 to $5,000 billion in 2011 and the GDP deflator increased from 100 to 105 over the same time period, what would the 2011 real GDP equal expressed in terms of 2010 dollars?
a. $4,285 billion b. $4,500 billion c. $4,725 billion d. $4,762 billion
Which of the following statements is true of dynamically complete models?
A. There is scope of adding more lags to the model to better forecast the dependent variable. B. The problem of serial correlation does not exist in dynamically complete models. C. All econometric models are dynamically complete. D. Sequential endogeneity is implied by dynamic completeness..
An incumbent firm lobbying government officials require any new firm that enter the market to include costly pollution-reducing devices, is an example of
A) learning by doing B) raising all firms' costs C) raising rivals' costs D) limit pricing