An aggregate demand curve
A) shifts to the right when the price level increases and to the left when the price level falls.
B) shifts to the right when population decreases and shifts to the left when population increases.
C) does not shift, unlike individual or market demand curves.
D) shifts to the right when any non-price-level factor increases total planned real spending.
D
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Consider a situation where economic theory suggests that you impose certain restrictions on your estimated multiple regression function
These may involve the equality of parameters, such as the returns to education and on the job training in earnings functions, or the sum of coefficients, such as constant returns to scale in a production function. To test the validity of your restrictions, you have your statistical package calculate the corresponding F-statistic. Find the critical value from the F-distribution at the 5% and 1% level, and comment whether or not you will reject the null hypothesis in each of the following cases. (a) number of observations: 152; number of restrictions: 3; F-statistic: 3.21 (b) number of observations: 1,732; number of restrictions:7; F-statistic: 4.92 (c) number of observations: 63; number of restrictions: 1; F-statistic: 2.47 (d) number of observations: 4,000; number of restrictions: 5; F-statistic: 1.82 (e) Explain why you can use the Fq,? distribution to compute the critical values in (a)-(d). What will be an ideal response?
Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market. b. an increased supply of American dollars in the foreign exchange market. c. an increased supply of Colombian pesos in the foreign exchange market. d. a decreased demand for Colombian pesos in the foreign exchange market. e. an increased demand for American dollars in the foreign exchange market.