The EG-ADF test
A) is the similar to the DF-GLS test
B) is a test for cointegration
C) has as a limitation that it can only test if two variables, but not more than two, are cointegrated
D) uses the ADF in the second step of its procedure
Answer: B
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The initial impact of an increase in government spending is to shift
A. aggregate supply to the right. B. aggregate demand to the left. C. aggregate demand to the right. D. aggregate supply to the left.
An advantage of macroeconomic policy based on pre-specified rules might be that ________
A) it is easier to stick to long-run considerations and avoid bad long-run outcomes B) it is more flexible than discretionary policy C) it is easier to adapt to short-run changes and avoid a bad short-run outcome D) all of the above E) none of the above