Making use of an economic model is a process of
A) solving hundreds of simultaneous equations.
B) running experiments to determine how changes in the endogenous variables will change the exogenous variables.
C) running experiments to determine how changes in the exogenous variables will change the endogenous variables.
D) resolving inconsistencies in the actions of economic agents.
C
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According to research by Stock and Watson, the recent decline in volatility in many macroeconomic variables was a
A) sudden drop that occurred around 1984. B) gradual decline throughout the 1980s. C) sudden drop that occurred around 1990. D) gradual decline throughout the 1990s.
A recent article about the US economy asked, “What is the price of low inflation?” In this context, the price is likely to be measured by
A. the value of comparative advantage. B. the cost of externalities. C. the increase in unemployment. D. the drop in market value. E. the opportunity cost of higher interest rates.
Which of the following is most likely to increase U.S. exports?
a. The government gives subsidies to U.S. firms that export goods or services. b. The government reduces the size of the budget surplus. c. The United States unilaterally reduces its restrictions on foreign imports. d. Taxes on domestic saving rise.
Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities
a. True b. False Indicate whether the statement is true or false