A government will create a surplus in a market when it sets a price
A. floor above the equilibrium price.
B. ceiling above the equilibrium price.
C. ceiling below the equilibrium price.
D. floor below the equilibrium price.
Answer: A
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The Fixed Effects regression model
A) has n different intercepts. B) the slope coefficients are allowed to differ across entities, but the intercept is "fixed" (remains unchanged). C) has "fixed" (repaired) the effect of heteroskedasticity. D) in a log-log model may include logs of the binary variables, which control for the fixed effects.
What is the main difference between new Keynesian economists and monetarists? a. Monetarists support a fixed-price model, whereas new Keynesians believe that pricesfluctuate
b. Monetarists reject the idea that government intervention can stabilize the economy,whereas new Keynesians support this notion. c. Monetarists believe that the aggregate supply curve is always horizontal, whereas newKeynesians believe that the aggregate supply curve is always vertical. d. Monetarists believe that an increase in the money supply changes real GDPinstantaneously, whereas new Keynesians assume that economic policy operates witha long and variable lag. e. Monetarists believe that deficit spending helps stimulate economic growth, whereas new Keynesians advocate a balanced budget.