Which of the following correctly identifies a characteristic of structural equations?
A. A structural equation should contain equal number of dependent and independent variables.
B. A structural equation should contain equal number of endogenous and exogenous variables.
C. A structural equation should have a behavioral, ceteris paribus interpretation on its own.
D. A structural equation should not contain structural errors.
Answer: C
You might also like to view...
Who does not sit on the Federal Open Market Committee?
A. The president of the New York Federal District Bank B. The Chairman of the Federal Reserve Board C. The Secretary of the Treasury D. The members of the Federal Reserve Board
To offset the indirect crowding-out effects, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A. reduce taxes rather than increase government spending. B. both reduce taxes and reduce spending to be able to achieve full employment. C. increase spending more than the simplest Keynesian model would predict. D. increase spending less than the simplest Keynesian model would predict.
Refer to the above table. If the price is $5, the perfectly competitive firm should produce
A. 105 units. B. 106 units. C. 107 units. D. 104 units.
Only long-run changes in output can be brought about by unexpected change in policy
a. True b. False Indicate whether the statement is true or false