A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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When a group lobbies for the prevention of free trade, the most likely reason is
A) rent seeking. B) tariff revenue. C) defense against expensive domestic labor. D) preservation of the environment.
One of the following is a regression example for which Entity and Time Fixed Effects could be used: a study of the effect of
A) minimum wages on teenage employment using annual data from the 48 contiguous states in 2006 . B) various performance statistics on the (log of) salaries of baseball pitchers in the American League and the National League in 2005 and 2006. C) inflation and inflationary expectations on unemployment rates in the United States, using quarterly data from 1960-2006. D) drinking alcohol on the GPA of 150 students at your university, controlling for incoming SAT scores.
Monetary policy has short-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) only the price level D) only the nominal interest rate, not the real interest rate E) none of the above
If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $8,000, rental receipts on land are $200, total business profits before taxes are $2,200, depreciation is $1,750, and indirect business taxes are $1,000, then gross domestic income is
A. $13,150. B. $15,350. C. $13,350. D. $11,400.