An argument is sometimes made that moderate inflation may help the economy by making which of the following more flexible?
a. interest rates
b. wages in labor markets
c. surpluses
d. shortages
b. wages in labor markets
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To decide whether Yi = ?0 + ?1X + ui or ln(Yi) = ?0 + ?1X + ui fits the data better, you cannot consult the regression R2 because
A) ln(Y) may be negative for 0
The cross price elasticities among substitute goods will be extremely high when:
a. b and d. b. they are very similar to each other. c. people are consuming them frequently. d. people consume them in equal quantities. e. they are imperfect substitutes.
What is a depreciation to one country must be an appreciation to the other.
Answer the following statement true (T) or false (F)
Rates of substitution are determined by:
A. the consumer's income. B. the consumer's preferences. C. the number of available consumption bundles. D. the prices of different goods.