The main examples of macroeconomic coordination failures are

a. profit declines.
b. relative price changes.
c. recessions and depressions.
d. consumer taste changes.

c

Economics

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The two conditions for a valid instrument are

A) corr(Zi, Xi) = 0 and corr(Zi, ui) ≠ 0. B) corr(Zi, Xi) = 0 and corr(Zi, ui) = 0. C) corr(Zi, Xi) ≠ 0 and corr(Zi, ui) = 0. D) corr(Zi, Xi) ≠ 0 and corr(Zi, ui) ≠ 0.

Economics

Which of these factors can explain the short recession experienced by the U.S. in 2001?

a. Terrorist attacks b. The stock market crash c. Bursting of the real estate bubble d. A rise in international oil prices e. Expenditure on war

Economics