One way fiscal policy affects aggregate demand is:
A. indirectly through government spending.
B. directly through tariffs.
C. directly through taxation.
D. indirectly through taxation.
D. indirectly through taxation.
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Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms. II. Retained earnings are considered income earned by firms rather than part of households' income. III. The government, households, and firms all have transactions in the goods market. A) I only B) I and II C) I and III D) III only
The components of internal validity are
A) a large sample, and BLUE property of the estimator. B) a regression R2 above 0.75 and serially uncorrelated errors. C) unbiasedness and consistency of the estimator, and desired significance level of hypothesis testing. D) nonstochastic explanatory variables, and prediction intervals close to the sample mean.