A key step in using instrument variable methods is to
A) find one or more exogenous variables that influence your dependent variable.
B) decrease the number of lags in the regression equation.
C) conduct interviews to determine how accurate your data really is.
D) run the regression on two different computers to see if the results differ.
E) eliminate the dependent variable.
A
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In the graph above, a government imposed price of $35 represents a price _____ and there is a _____.
A. floor; surplus
B. floor; shortage
C. ceiling; surplus
D. ceiling; shortage
The macroeconomist would most likely study:
A. the effects of changing beer prices on the market for pretzels. B. the effects of an increased income tax on a typical household's purchase of goods. C. how consumers in Gary, Indiana, respond to lower gasoline prices. D. the effects of a reduction in income tax rates on the nation's total output.
If imports exceed exports it would be called a trade __________.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements are correct? In (the)
a. Keynesian model, unemployment is voluntary. b. real business cycle models, all unemployment is voluntary. c. new classical models, there is voluntary unemployment. d. Both b and c e. All of the above