________ are inducements to act in certain ways
Fill in the blank(s) with correct word
Incentives
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In the production function Y = A(G,P,T) F(K,R,H,N), the factors that affect the entire production process are
A) G,R,H. B) G,P,T. C) P,T,K. D) KRHN.
In your intermediate macroeconomics course, government expenditures and the money supply were treated as exogenous, in the sense that the variables could be changed to conduct economic policy to influence target variables,
but that these variables would not react to changes in the economy as a result of some fixed rule. The St. Louis Model, proposed by two researchers at the Federal Reserve in St. Louis, used this idea to test whether monetary policy or fiscal policy was more effective in influencing output behavior. Although there were various versions of this model, the basic specification was of the following type: ?ln(Yt) = ?0 + ?1?ln mt + ... + ?p?ln mt-p-1 + ?p+1?ln Gt + ... + ?p+q?ln Gt-q-1 + ut Assuming that money supply and government expenditures are exogenous, how would you estimate dynamic causal effects? Why do you think this type of model is no longer used by most to calculate fiscal and monetary multipliers? What will be an ideal response?
Which of the following statements explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty. b. Poverty arises out of the lack of investment, but countries cannot invest because they are poor. c. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods. d. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods. e. There are dual economies in the world: Some are meant to be rich and others are meant to be poor.
A nationwide concentration ratio is likely to understate market power when
A. A market is perfectly contestable. B. The true markets are local and small. C. There is extensive foreign competition. D. Firms sell nationally.