Think of examples of goods whose relative price has risen or fallen by a large amount
What will be an ideal response?
Some examples of items where both the money price and the relative price have risen over time are gasoline, college tuition, and food. Some examples of items where both the money price and the relative price have fallen over time are personal computers, HD televisions, and calculators.
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Stationarity means that the
A) error terms are not correlated. B) probability distribution of the time series variable does not change over time. C) time series has a unit root. D) forecasts remain within 1.96 standard deviation outside the sample period.
The supply curve in the market for land that has limited availability is:
a. perfectly elastic. b. relatively inelastic. c. unit elastic. d. perfectly inelastic. e. relatively elastic.
Other things equal, in the short run a lower price level leads households to
a. increase consumption and firms to buy more capital goods. b. increase consumption and firms to buy fewer capital goods. c. decrease consumption and firms to buy more capital goods. d. decrease consumption and firms to buy fewer capital goods.
The most unequal distribution of income in the United States is in Washington, D.C
Indicate whether the statement is true or false