The user cost of an exhaustible resource is
A) the same as its price.
B) the same as its production cost.
C) the opportunity cost of using the resource today rather than saving it for the future.
D) the amount of the resource that is extracted today.
E) not related to the amount of the resource that exists.
C
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In a simple macroeconomic model, replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes, and ________ the effect on equilibrium GDP of changes in
autonomous consumption. A) increases, increases B) increases, dampens C) dampens, increases D) dampens, dampens
The Times Series Regression with Multiple Predictors
A) is the same as the ADL(p,q) with additional predictors and their lags present. B) gives you more than one prediction. C) cannot be estimated by OLS due to the presence of multiple lags. D) requires that the k regressors and the dependent variable have nonzero, finite eighth moments.