The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively.
What is the estimated intercept of the trend line in the 4th quarter?
A. 18
B. 22.8
C. 20
D. 16
E. none of the above
Answer: E
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During World War II, the U.S. government increased spending:
A. by less than it raised taxes. B. by more than it raised taxes. C. by the same amount as it raised taxes. D. but did not increase taxes.
In an economy without government or a foreign sector the equilibrium level of output occurs when
A) actual saving equals actual investment. B) actual saving equals desired investment. C) desired saving equals desired investment. D) desired saving equals actual investment.
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?
Real wages fall if prices increase more than nominal wages
Indicate whether the statement is true or false