Because many resource prices are set by long-term contracts, in the short run
a. costs will increase by more than product prices when demand increases.
b. costs will decrease when the demand for products increases.
c. costs will increase by less than product prices when demand increases.
d. costs will decrease by more than product prices when demand decreases.
C
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With a closed economy and no government spending, the total demand for output is equal to ________
A) consumption per-worker plus investment per-worker B) consumption per-worker minus investment per-worker C) consumption per-worker times investment per-worker D) consumption per worker divided by investment per-worker
In practice, you may want to use the OLS estimator instead of the WLS because
A) heteroskedasticity is seldom a realistic problem B) OLS is easier to calculate C) heteroskedasticity robust standard errors can be calculated D) the functional form of the conditional variance function is rarely known