If deficit spending causes an increase in economic activity, it may "crowd in" some potential investment spending
a. True
b. False
Indicate whether the statement is true or false
True
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The gap between the actual and predicted values of a dependent variable is called
A) the error term. B) an exogenous factor. C) the residual. D) an endogenous factor.
The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium. If the government establishes a $4 per gallon price support, estimate the change in p, Q, and social welfare
What will be an ideal response?
Economic growth is important because expansion in the output of goods and services
What will be an ideal response?
The demand for lobster is lower in the spring than in the summer. If the price of lobster is higher in spring than in summer then
a) consumers' tastes for lobster are greater in spring than in summer b) the supply of lobster is greater in summer than in spring. c) there are more substitutes for lobster in summer than there are in spring d) there is a shortage of lobster in spring and a surplus of lobster in summer