If adding one more lag of the dependent variable would explain the dependent variable better, then the model is not dynamically complete.
Answer the following statement true (T) or false (F)
True
Rationale: A model is dynamically complete when no further lags of the dependent or the explanatory variables matter for explaining the dependent variable.
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During the 2007-2009 recession and its aftermath, Okun's law
A) predicted the cyclical unemployment rate more accurately than it did prior to the recession. B) predicted the cyclical unemployment rate at roughly the same rate of accuracy as it did prior to the recession. C) predicted a higher cyclical unemployment rate than was actually experienced in the U.S. economy. D) predicted a lower cyclical unemployment rate than was actually experienced in the U.S. economy.
"The market demand curve for labor is the horizontal summation of the labor demand curves of all firms." Do you agree or disagree? Why?
What will be an ideal response?
The long-run aggregate supply relationship refers to: a. a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy. b. any time period of more than a year
c. a time period in which input prices can change, but output prices have not had time to adjust. d. a time period in which output prices can change but input prices have not had time to adjust.
The profit maximizing or loss minimizing quantity of output for any firm to produce exists at that output level in which:
A. total revenue is maximized. B. total cost is minimized. C. marginal cost is minimized. D. marginal revenue equals marginal cost.