Refer to Figure 27-11. If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph, the difference in real GDP between point A and point B will be
A) less than $100 billion.
B) $100 billion.
C) more than $100 billion.
D) There is insufficient information given here to draw a conclusion.
C
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In a quasi-experiment
A) quasi differences are used, i.e., instead of ?Y you need to use ( - λ × ), where 0 < λ < 1. B) randomness is introduced by variations in individual circumstances that make it appear as if the treatment is randomly assigned. C) the causal effect has to be estimated through quasi maximum likelihood estimation. D) the t-statistic is no longer normally distributed in large samples.
One important difference between the international economy of today and the economy of 100 years ago is
A) that labor is much more mobile. B) for the first time, technological innovations have reduced the barrier of distance. C) for the first time, capital is mobile. D) the presence of international bodies such as the IMF and World Bank.