One guideline that should be used whenever possible in developing a model is to
a. keep the model as simple as possible
b. make the model as complex as possible so that it will be more accurate than other models
c. rely on as many assumptions as possible
d. not be concerned about including unnecessary details
e. make certain that the model is an accurate, complete depiction of reality
A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Refer to Scenario 2. What percentage of the variation in the dependent variable, Market Value, is explained by the regression model?
What will be an ideal response?
At the consumer's optimum the
a. budget constraint will have a slope of MUx/Px. b. slope of the indifference curve is equal to the slope of the budget constraint. c. indifference curve will intersect the budget constraint at the midpoint of the budget constraint. d. Both b and c are correct.
If tariffs contribute to inefficiency in the international allocation of resources and lower output and income, why have nations enacted tariffs?
What will be an ideal response?