The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model.
b. Exogenous variables are fixed by definition.
c. Endogenous variables are fixed by definition.
d. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets.
e. Endogenous variables are real factors while exogenous variables are nominal factors.
.A
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If there is an inflationary gap in the economy, discretionary fiscal policy would likely involve an action to
A) shift the aggregate demand curve to the right. B) shift the aggregate demand curve to the left. C) shift both the aggregate demand curve and aggregate supply curve to the right. D) shift both the aggregate demand curve and aggregate supply curve to the left.
Most economists believe unions are bad for the economy as a whole
a. True b. False Indicate whether the statement is true or false