In the monetarist view
A. inappropriate monetary policy is a major source of macroeconomic instability.
B. adverse aggregate supply shocks are a major source of macroeconomic instability.
C. changes in investment spending are a major source of macroeconomic instability.
D. the fact that prices and wages are flexible is a major source of macroeconomic instability.
Answer: A
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All of the following are reasons for using the differences estimator with additional regressors, with the exception of
A) efficiency. B) providing a check for randomization. C) providing an adjustment for "conditional" randomization. D) making the difference estimator easier to calculate than in the case of the differences estimator without the additional regressors.
Using the Keynesian aggregate expenditures model, which of the following is true?
a. Macro equilibrium may occur at levels of real GDP other than full-employment real GDP. b. At any macro equilibrium, the actual rate of unemployment must equal the natural rate of unemployment. c. If an economy is operating below full employment capacity, the Keynesian model indicates that lower wage rates will automatically adjust the economy back to full employment. d. All of these are correct.
Which of the following is true? a. People specialize by concentrating their energies on the activity to which they are best suited, because they incur lower opportunity costs as a result. b. One advantage of specialization is that workers acquire greater skill from repetition
c. If a person, a region, or a country can produce a good or service at a lower opportunity cost than others, we say that they have a comparative advantage in the production of that good or service. d. All of the above are true.
Consumer surplus is: a. the area underneath the demand curve
b. the total utility derived from consuming a good. c. the marginal utility of the last unit consumed multiplied by the number of units consumed. d. the difference between what consumers are willing to pay and what they are required to pay for a good.