The coefficients of the VAR are estimated by
A) using a simultaneous estimation method such as TSLS.
B) maximum likelihood.
C) panel methods.
D) estimating each of the equations by OLS.
Answer: D
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Looking at historical evidence for the United States and other countries, which of the following are TRUE?
I. There is a correlation between the growth rate of the quantity theory of money and the growth rate of real GDP. II. There is a correlation between the growth rate of the quantity theory of money and the inflation rate. A) Only I is true. B) Only II is true. C) Both I and II are true. D) Neither I or II is true.
Farm programs that guarantee a price higher than equilibrium
a. cause shortages b. decrease government spending c. decrease taxes d. raise farm property values e. increase suburban development
In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?
A. The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person. B. The highest skilled workers migrate from the source country to the destination country. C. The lowest skilled workers migrate from the source country to the destination country. D. Migration leads to an increase in average skills in both locations whenever there is positive selection. E. The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person.
At the outset of the 21st century, most global trade took the form of:
a. services, rather than goods b. goods, rather than services c. equal trade in goods and services d. trade surpluses in thee service sector