Which of the following is an example of the gambler's fallacy?
a. If you flip a coin six times and it comes up heads each time, when you flip for the seventh time the odds are better that it will come up tails.
b. People think that housing prices will continue to rise because they have continually risen over the past 10 years.
c. If I send my resume to enough employers, the law of averages
says that someone will eventually hire me.
d. all of the above
d
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In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
________ in the foreign interest rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
A statistical discrepancy
a. exists because data sources are not perfect, so measures of expenditures and income are not equal. b. insures that GDP will approximately equal GNP. c. explains the close association between GDP and quality of life measures such as literacy and life expectancy. d. explains the inadequacy of GDP in capturing the value of leisure and the value of a clean environment.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.