Randomized sampling is not feasible in many policy studies, so researchers turn to different strategies to estimate causality from observational data. One such approach is difference-in-differences (DiD). Which of the following statements best describes DiD?
a. DiD is the only approach that uses data from individuals in both groups that are exposed to the treatment.
b. DiD is a hybrid approach that utilizes a cross-section of individuals across time to measure differences.
c. DiD uses differences in individual characteristics to divide the data into two groups.
d. The convenient feature of DiD is that the two groups do not need to experience similar trends in the outcome variable during the pretreatment time period.
b. DiD is a hybrid approach that utilizes a cross-section of individuals across time to measure differences.
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If a nation's population grows, then
A) growth in real GDP per person will be less than the growth of real GDP. B) there can be no economic growth. C) growth in real GDP per person will be greater than the growth of real GDP. D) there must be an increase in real GDP per person.
If the labor and capital grow more quickly, then real GDP will
A) not grow fast enough. B) grow more quickly. C) grow more slowly. D) stay fixed at potential GDP.
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will make total domestic producer surplus equal to
A) $2,500. B) $5,000. C) $5,000,000. D) $10,000,000. E) $30,000,000.
Movements along the Phillips curve result in the:
a. savings rate varying inversely with the unemployment rate. b. inflation rate varying directly with the unemployment rate. c. inflation rate varying inversely with the unemployment rate. d. interest rate varying inversely with the unemployment rate.