In evaluating a relationship between x and y, ceteris paribus means other variables
A) are not relevant to x and y.
B) move in opposite directions to x and y.
C) are not changing while x and y change.
D) move in the same direction as x and y.
C
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U.S. economic data from 1955 to 2000 show that both unemployment and inflation rates increased during that period
a. True b. False Indicate whether the statement is true or false
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The variance in the returns of project D is:
A. 900. B. 1,600. C. 225. D. 0.
Suppose policy makers underestimate the natural rate of unemployment. In situations like these, policy makers will likely implement policies that result in
A) more unemployment than necessary. B) an unemployment rate that is "too high." C) a higher inflation rate than necessary. D) a steadily decreasing inflation rate. E) overly contractionary monetary and fiscal policy.