Which of the following is assumed in time series regression?
A. There is no perfect collinearity between the explanatory variables.
B. The explanatory variables are contemporaneously endogenous.
C. The error terms are contemporaneously heteroskedastic.
D. The explanatory variables cannot have temporal ordering.
Answer: A
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When will a wage increase cause a firm to produce more output in the long run?
a. Always. b. When labor and capital are complements in production. c. When labor is a regressive factor. d. Never.
YearCPI2010952011100201210520131042014106According to the table shown, what can be said about the cost of living in 2012?
A. Every consumer will experience a 5 % increase in his cost of living from 2011. B. The typical consumer must spend 5 % more in 2012 than he did in 2011 in order to buy the same goods. C. Whatever consumers bought in 2012 cost 5% more than what they spent in 2011. D. None of these statements is true.