Assume that for the T = 2 time periods case, you have estimated a simple regression in changes model and found a statistically significant positive intercept. This implies
A) a negative mean change in the LHS variable in the absence of a change in the RHS variable since you subtract the earlier period from the later period
B) that the panel estimation approach is flawed since differencing the data eliminates the constant (intercept) in a regression
C) a positive mean change in the LHS variable in the absence of a change in the RHS variable
D) that the RHS variable changed between the two subperiods
Answer: C) a positive mean change in the LHS variable in the absence of a change in the RHS variable
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If the economy's real GDP doubles in 18 years, we can
A. conclude that its average annual rate of growth is 12%. B. conclude that its average annual rate of growth is 4%. C. not say anything about the average annual rate of growth. D. conclude that its average annual rate of growth is 8%.
If the labor force participation rate is rising and the working-age population is not changing, then the
A) size of the labor force is rising. B) number of unemployed people is rising and the size of the labor force is falling. C) size of the labor force is falling. D) number of unemployed people is falling and the size of the labor force is rising.
Cyclical unemployment is the result of
A) the search process of matching workers with jobs. B) a slowdown in the economy. C) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. D) the ups and downs in inflation.
Farm productivity per acre grew most rapidly after
a. the Revolutionary War b. the Civil War c. World War I d. the 1929 stock market crash e. World War II