The biggest conceptual difference between using VARs for forecasting and using them for structural modeling is that
A) you need to use the Granger causality test for structural modeling.
B) structural modeling requires very specific assumptions derived from economic theory and institutional knowledge of what is exogenous and what is not.
C) you can no longer use the information criteria to decide on the lag length.
D) structural modeling only allows a maximum of three equations in the VAR.
Answer: B
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Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of
A) conglomerate merger. B) concentration ratio. C) vertical merger. D) horizontal merger.
Real GDP is:
a. the base year market value of all final goods and services produced domestically during a given period. b. the current year market value of all final goods and services produced domestically during a given period. c. usually greater than nominal GDP d. the current year market value of domestic production of intermediate goods.