An example of indexing is a "cost of living" adjustment clause in a wage contract
a. True
b. False
Indicate whether the statement is true or false
True
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Today, the dollar is worth 1.15 euros. Due to changes in economic conditions, people expect that the dollar will be worth 1.20 euros in the next month. This belief
A) increases the demand for dollars. B) decreases the demand for dollars. C) increases the demand for euros. D) increases the value of exports to Europe.
The "zero sum" society is
A) a society that has reached its limit in population growth and has placed quotas on its birth rate. B) a society where the rate of growth of GDP minus the inflation rate equals zero. C) a society in which the fluctuations of GDP around the natural level of output sum to zero. D) a society with no productivity growth in which any additional good enjoyed by one person requires that something be taken away from someone else.
In the multiple regression model, the t-statistic for testing that the slope is significantly different from zero is calculated
A) by dividing the estimate by its standard error. B) from the square root of the F-statistic. C) by multiplying the p-value by 1.96. D) using the adjusted R2 and the confidence interval.
Which one of the following macroeconomic theories is most closely associated with the Laffer curve?
A. Monetarism B. New classical economics C. Keynesian economics D. Supply-side economics