When government purchases increase, the spending multiplier indicates the _____
a. amount of movement along the aggregate demand curve
b. amount of movement along the aggregate supply curve
c. size of the rightward shift of the aggregate demand curve at a given price level
d. size of the rightward shift of the aggregate supply curve at a given price level
e. size of the expansionary gap
c
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The presence of different technologies can allow greater efficiency because one technology is better at peak times and the other is better at all times
Indicate whether the statement is true or false
The OLS residuals in the multiple regression model
A) cannot be calculated because there is more than one explanatory variable. B) can be calculated by subtracting the fitted values from the actual values. C) are zero because the predicted values are another name for forecasted values. D) are typically the same as the population regression function errors.
Jenny took out a loan of $27,000 from All Union Bank. She deposited the amount in her savings account in Smith and Kim Bank. In the given scenario, which of the following statements is true? a. $27,000 will be an asset for Smith and Kim Bank, while $27,000 will be a liability for All Union Bank. b. $27,000 will be a liability for Smith and Kim Bank, while $27,000 will be an asset for All Union
Bank. c. $27,000 will be an asset for both Smith and Kim Bank and All Union Bank. d. $27,000 will be a liability for both Smith and Kim Bank and All Union Bank.
According to the theory of _____, people look at past experiences and gradually adapt their beliefs and behavior as circumstances change
a. adaptive expectations b. rational expectations c. sticky wages d. absolute advantage