Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the effect on the price level cannot be determined.
C) Real GDP rises and the price level necessarily falls.
D) Real GDP falls and the effect on the price level cannot be determined.
E) Real GDP rises and the price level necessarily rises.
B
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Under imperfect multicollinearity
A) the OLS estimator cannot be computed. B) two or more of the regressors are highly correlated. C) the OLS estimator is biased even in samples of n > 100. D) the error terms are highly, but not perfectly, correlated.
Which of the following statements presents accurate information about antebellum wages for males employed in manufacturing?
a. During the 1850s, real wages doubled. b. Real wages were higher and grew more rapidly in New England than in the Middle Atlantic states. c. Wage rates converged in the mid-1800s due to transportation improvements. d. Wage rates in the 1820s were higher in rural areas than in urban areas.