Consider the following equation:
Log(yt)= 0.7 +1.2log(st)+0.3log(st-1)+0.2log(st-2)+0.1log(st-3)
What is the percentage increase in y given a permanent 1% increase in s?
A. 1.2
B. 1.8
C. 2.5
D. 0.5
Answer: B
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Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) a discouraged worker.
Which of the following is a sequential game?
A) rock-paper-scissors (Roshambo) B) paintball C) Monopoly D) boxing
An increase in demand, all other things unchanged, will result in ________ in equilibrium price and ________ in equilibrium quantity.
Fill in the blank(s) with the appropriate word(s).
Assume that the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30%. If the gross income increases by $100, consumption will initially increase by
A) $44 B) $56 C) $70 D) $80 E) $100