You decrease your product price by $10 in market A but leave it unchanged in market B. Sales in A rise from 840 units per week to 940 while sales in B also rise from 770 to 790 . The difference-in-difference estimate of the effect of the price change is:
a. 80 units
b. 100 units
c. 120 units
d. 140 units
a
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According to the misperceptions theory, an anticipated decline in the money supply leads to a shift of the AD curve ________ and a shift of the SRAS curve ________
A) down and to the left; downward B) down and to the left; upward C) up and to the right; downward D) up and to the right; upward
A nation's economic growth is more rapid when
A) special interest groups acquire the political power to restrict competition. B) capital resources are devoted to their most efficient use. C) there are barriers to establishing legal ownership of capital resources. D) scarce resources are made available for all citizens free of charge.
M1 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Paper money. d. Coins.
The two parts of the Keynesian consumption function are consumption that depends on ________ and consumption that depends on ________.
A. planned spending; unplanned spending B. real income; nominal income C. money; wealth D. disposable income; factors other than disposable income