Which of the following are NOT included among Gordon's criticisms of Friedman's fooling model?
A) Workers buy many goods on a weekly basis and thus could discover quite quickly that prices had risen.
B) Workers could discover movements in the aggregate price level fairly easily.
C) The model relied on a non-market-clearing explanation of the labor market.
D) Workers would predict higher prices if policies that led to higher prices in the past were used again.
C
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If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) increase; either increase, decrease, or remain constant B) decrease; either increase, decrease, or remain constant C) increase; increase D) increase; decrease
Estimation of the IV regression model
A) requires exact identification. B) allows only one endogenous regressor, which is typically correlated with the error term. C) requires exact identification or overidentification. D) is only possible if the number of instruments is the same as the number of regressors.