?A standard linear model which is supposed to measure a causal relationship is called a structural equation.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: A standard linear model which is supposed to measure a causal relationship is called a structural equation.?
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An example of indexing is a “cost of living” adjustment clause in a wage contract.
Answer the following statement true (T) or false (F)
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a $10 billion increase in investment spending will cause the equilibrium output to rise by:
a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.
Evidence from a study of the market for baseball players using 1960s data
a. indicated that sports with strong player associations are unlikely to experience wage discrimination. b. suggested that government regulation had eliminated most evidence of wage discrimination. c. found some evidence of consumer-driven wage discrimination. d. found that measurement of marginal productivity was very difficult for baseball players.
The ___________ school holds that all inflations are caused by excessive growth in the money supply and that monetary policy affects GDP directly.
Fill in the blank(s) with the appropriate word(s).