The long run is the period of time during which:
a. real wage is exactly equal to nominal wage.
b. inflation is zero
c. excess aggregate demand leads to a shortage.
d. real wages are constant.
e. all resource prices can be varied.
e
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Seasonal variations can be incorporated into a time-series model in a number of different ways, including:
a. ratio-to-trend method b. use of dummy variables c. root mean squared error method d. a and b only e. a, b, and c
For purposes of calculating the CPI, the transportation category of consumer spending includes the cost of
a. subways. b. gasoline. c. both subways and gasoline. d. neither subways nor gasoline.
A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. a liability for the bank and an asset for Greg's Ice Cream. The loan increases the money supply. b. a liability for the bank and an asset for Greg's Ice Cream. The loan does not increase the money supply. c. an asset for the bank and a liability for Greg's Ice Cream. The loan increases the money supply. d. an asset for the bank and a liability for Greg's Ice Cream. The loan does not increase the money supply.
Since the government has been paying out farm subsidies
A. the number of family farms has increased by about 40 percent. B. the number of family farms has increased by 10%. C. the number of family farms has decreased by 10%. D. the number of family farms has decreased by 70 percent.