When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation
a. True
b. False
Indicate whether the statement is true or false
True
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After the Civil War, wheat production became regionally specialized and output production in the Midwest increased consequently
Indicate whether the statement is true or false
In the regression model Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, to test that the two regressions are identical, you must use the
A) t-statistic separately for ?2 = 0, ?2 = 0. B) F-statistic for the joint hypothesis that ?0 = 0, ?1 = 0. C) t-statistic separately for ?3 = 0. D) F-statistic for the joint hypothesis that ?2 = 0, ?3= 0.
Mikey likes bagels, so he buys an old pizza shop for $150,000 and spends $10,000 installing new equipment which will allow him to make bagels instead of pizza. How will Mikey's recent purchases affect GDP?
A. Investment will increase $160,000. B. Investment will increase $150,000, and consumption will increase $10,000. C. Consumption will increase $150,000, and investment will increase $10,000. D. Investment will increase $10,000.
In comparison to the U.S., Germany has a relatively low percentage of union membership
a. True b. False Indicate whether the statement is true or false