In the aggregate expenditures model, if aggregate expenditures (AE) equal $6 trillion and GDP equals $7 trillion, then:
a. inventory depletion equals ?$1 trillion.
b. inventory accumulation equals $1 trillion.
c. investment equals $1 trillion.
d. investment equals ?$1 trillion.
b
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The Coase Theorem points out that for an efficient outcome to result, it is irrelevant which party receives the property rights
Indicate whether the statement is true or false
Since price tends to equal marginal utility, the price of water is low and the price of diamonds is high
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. Fixed effects estimation is not suitable when the unobserved cluster effect is correlated with one or more explanatory variables. B. Fixed effects approach is not applicable if the key explanatory variables change only at the level of the cluster. C. The ordinary least squares standard errors are incorrect when there is cluster effect. D. Random effects estimation can be applied to a cluster sample only if the unobserved cluster effect is correlated with one or more explanatory variables.
Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market price will be
A. below P1. B. between P1 and P3. C. P2. D. above P3.