Suppose the long-run aggregate supply curve shifts to the right as a consequence of the discovery of more efficient production technologies. Given unchanged aggregate expenditure, this implies a rise in long-run equilibrium output and a decline in the equilibrium price level
a. True
b. False
Indicate whether the statement is true or false
True
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In regression analysis, the dependent variable
A) is always quantity demanded. B) is the variable whose variation is to be explained. C) is one of the factors that explains what is happening with demand. D) is represented by the inverse demand function.
Suppose that the conditional variance is var(ui|Xi) = ?h(Xi) where ? is a constant and h is a known function. The WLS estimator is
A) the same as the OLS estimator since the function is known B) can only be calculated if you have at least 100 observations C) the estimator obtained by first dividing the dependent variable and regressor by the square root of h and then regressing this modified dependent variable on the modified regressor using OLS D) the estimator obtained by first dividing the dependent variable and regressor by h and then regressing this modified dependent variable on the modified regressor using OLS
Price elasticity remains constant along a straight-line demand curve
a. True b. False Indicate whether the statement is true or false
Inflation is basically
What will be an ideal response?