To test the null hypothesis of a unit root, the ADF test
A) has higher power than the so-called DF-GLS test.
B) uses complicated interative techniques.
C) cannot be calculated if the variable is integrated of order two or higher.
D) uses a t-statistic and a special critical value.
Answer: D
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Voluntary export restraints and quotas are essentially identical in their welfare effects
Indicate whether the statement is true or false
Expenditure switching refers to
A) a switching back and forth between investment and consumption expenditures. B) a switching back and forth between domestic and foreign goods in response to changes in the exchange rate. C) a switching back and forth between domestic and foreign goods in response to changes in the interest rate. D) a switching of back and forth in the current account from a deficit to a surplus and vice versa.
Refer to the table representing Kara's bank account. Assuming that $2,000 was deposited into her account at the beginning of year 1, and no further deposits or withdrawals were made, the value for cell D:
A. is $662.
B. is $242.
C. is $420.
D. cannot be determined.
Refer to the below graphs. If union workers decide to take more leisure, while the prices of the products produced by union workers decrease, this situation is depicted in graph:
A. A
B. B
C. C
D. D