Which of the following goods would most likely be an inferior good?
A. steak
B. theater tickets
C. French wines
D. generic detergent
Answer: D
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From the quantity equation we find that the rate of inflation is equal by definition to the growth rate of nominal GDP ________ the growth rate of real GDP
A) minus B) plus C) multiplied by D) divided by
Which of the following is a difference between a fixed effects estimator and a first-difference estimator?
A. The fixed effects estimators are always larger than the first difference estimators in a two-period panel data analysis. B. The fixed effects estimator is more efficient than the first-difference estimator when the idiosyncratic errors are serially uncorrelated. C. The first difference estimator is more sensitive to nonnormality and heteroskedasticity. D. The bias in the first difference estimator depends on the time period (T) of analysis while the bias in the fixed effect does not depend on T.
Which of the following goods are not close substitutes?
a. Peanut butter and jelly b. Margarine and butter c. Tea and coffee d. Beef and chicken
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:
A. $9 trillion. B. $6 trillion. C. $11.5 trillion. D. $6.5 trillion.