Persistent government budget deficit result in ________ taxes and a ________ stock of capital in the future
A) higher, larger
B) lower, larger
C) higher, smaller
D) lower, smaller
C
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Auto and steel workers commonly experience this type of unemployment in a recession
A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural unemployment rate
The vertical distance between the average total cost curve and the average variable cost curve at any given output level equals average fixed cost at that particular output level
a. True b. False Indicate whether the statement is true or false
Which of the following assumptions is required for obtaining unbiased random effect estimators?
A. The idiosyncratic errors are heteroskedastic. B. The unobserved effect is independent of all explanatory variables in all time periods. C. The idiosyncratic errors are serially correlated. D. The unobserved effect is correlated with the explanatory variables.
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. If government decides to correct this externality with a subsidy to consumers, then the:
A. demand curve will shift from D2 to D1. B. demand curve will shift from D1 to D2. C. supply curve will shift from S1 to S2. D. supply curve will shift from S2 to S1.