A percentage increase in the overall price level is called
A) cost of living.
B) inflation.
C) Paasche index.
D) Fischer index.
B
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A true signal must
A) convey information only. B) convey information and direct the resource owners to act appropriately. C) convey information about the long-run future. D) explain in detail why something should be done.
A balanced budget occurs when
A) the national debt is reduced to zero dollars. B) a budget deficit during one year is matched by a budget surplus in the next year. C) transfer payments equal tax revenues. D) government expenditures equal tax revenues. E) the deficit-GDP ratio equals one.
Which of the following statements is true of hypothesis testing?
A. The t test can be used to test multiple linear restrictions. B. A test of single restriction is also referred to as a joint hypotheses test. C. A restricted model will always have fewer parameters than its unrestricted model. D. OLS estimates maximize the sum of squared residuals.
When the central bank buys $1,000,000 worth of government bonds from the public, the money supply:
A. decreases by $1,000,000. B. increases by more than $1,000,000. C. increases by less than $1,000,000. D. increases by $1,000,000.