The AD, SRAS, and LRAS curves each show a relationship between which two economic variables?
A) The aggregate price level and output
B) The aggregate price level and the interest rate
C) Output and unemployment
D) Output and the interest rate
A
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A common definition of a recession is a time with
A) a decline in the price level. B) a decline in interest rates. C) a decrease in real GDP for two or more successive quarters. D) a decrease in real GDP for two or more successive years.
If you reject a joint null hypothesis using the F-test in a multiple hypothesis setting, then
A) a series of t-tests may or may not give you the same conclusion. B) the regression is always significant. C) all of the hypotheses are always simultaneously rejected. D) the F-statistic must be negative.
Suppose a farmer in Nebraska incurs $8,700 in crop damage from sparks that are created when a local railroad company sends trains along tracks bordering the farm. This damage can be best described as a:
a. negative externality. b. positive externality. c. transaction cost. d. social benefit.
If the cross-elasticity of goods X and Y is negative, then the sales of X move:
A. in the opposite direction as the price of Y, and X and Y are substitute goods. B. in the opposite direction as the price of Y, and X and Y are complementary goods. C. in the same direction as the price of Y, and X and Y are complementary goods. D. in the same direction as the price of Y, and X and Y are substitute goods.