Suppose an economist uses an econometric model to estimate the demand for peanut butter in the United States. This modeling is an example of
a. economic policy making
b. normative economics
c. positive economics
d. macroeconomic analysis
e. descriptive economic analysis
C
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Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million
Based on this information, which of the following is true? A) Aggregate expenditure is greater than GDP. B) Aggregate expenditure is equal to GDP. C) There was an unplanned change in inventories. D) Aggregate expenditure is less than GDP.
The decline in traditional banking internationally can be attributed to
A) increased regulation. B) improved information technology. C) increasing monopoly power of banks over depositors. D) increased protection from competition.
In an economic downturn, sticky wages and prices reduce the economy's speed of adjustment because
A. hyperinflation will likely occur. B. they cause deflation. C. union workers would likely quit and look for work elsewhere. D. businesses are unable to adjust quickly to changes in aggregate demand.
Unemployment compensation is a ________ government transfer program.
A. state B. local C. federal D. municipal