Consistency of FGLS requires:
A. ?utto be uncorrelated with xt-1, xt, and xt+1.
B. ?utto be uncorrelated with xt and xt+1.
C. ?utto be correlated with xt and xt+1.
D. ?utto be correlated with xt-1, xt, and xt+1.
Answer: A
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A central bank's sale of securities from its portfolio will:
A. decrease the size of its balance sheet. B. only change the composition of its liabilities. C. only change the composition of its assets. D. have no impact at all on the balance sheet.
Demand-pull inflation is caused by
A. aggregate demand increasing along an upward sloping or a vertical aggregate supply curve. B. aggregate demand decreasing along an upward sloping or a vertical aggregate supply curve. C. aggregate demand increasing along a horizontal aggregate supply curve. D. aggregate demand decreasing along a horizontal aggregate supply curve.
In the above figure, a single-price monopolist charges a price of ________, resulting in total revenue equal to area ________
A) $10; hbcd B) $20; fjem C) $10; fbcg D) $30; fbcg
Goods differ on the basis of whether their consumption is rival and excludable. Explain the terms "rivalry" and "excludability" as they are used to define goods
List the four categories of goods, and define these categories in terms of rivalry and excludability.