Two important considerations during the difference-in-difference approach are
a. Representativeness, Reflectiveness
b. Injections, Leakages
c. Representativeness, Leakages
d. Reflectiveness, Injections
c
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The Interstate Highway system in the U.S. has boosted economic productivity mainly through ________
A) the positive impact on tourism B) reduction in transportation costs C) increased competition among fast food restaurants D) increased speed of military deployments
If a change passes the cost-benefit test, then
A) it is a Pareto improvement. B) it may be a Pareto improvement. C) it is not a Pareto improvement. D) total surplus is maximized.
The per se rule was applied in the Alcoa case
a. True b. False Indicate whether the statement is true or false