Two workers are employed in the same job by the same firm; however, they are paid different wage rates. This could be explained by differences in
a. the income effect
b. the price of the firm's output
c. their marginal products due to differences in ability
d. working conditions
e. risk
C
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The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of
A) the multiplier effect. B) an automatic stabilizer. C) an outside lag. D) an inside lag.
Suppose you purchase a new home for $75,000, making a down payment of 20% and taking out a mortgage on the balance
What is the return on your investment in your home if one year later the price of the home increases by 5%? What if the price of the home decreases by 5%?
If the U.S. government decided to pay off the national debt by creating money, what would be the most likely effect?
a. a substantial reduction in real GDP b. a deflationary collapse c. rapid inflation d. an increase in the trade surplus
Which of the following statements is true of spurious regressions?
A. The OLS estimates of the population parameters are efficient and unbiased and the t statistic is valid. B. Even if the explanatory variables and the dependent variable are independent times series processes, the R2 can be large. C. Spurious regressions are limited to I(0) processes, and are not possible in case of I(1) processes. D. Spurious regressions are limited to I(1) processes, and are not possible in case of I(0) processes.