Terrance loses his job and immediately begins looking for another. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate decreases.
b. increases, and the labor-force participation rate is unaffected.
c. is unaffected, and the labor-force participation rate increases.
d. decreases, and the labor-force participation rate is unaffected.
B
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The money supply is vertical because
A) prices are indeterminate. B) prices have no real impact. C) the money supply is set by policy. D) prices are counter-cyclical.
Suppose we are studying the effects of expanded income supplement for senior citizens on their health. We use the two-group, to-period differences-in-differences setup, with working-age citizens as our control group.Which of the following is a key assumption for the validity of this identification strategy?
A. In the absence of the intervention, theaverage health outcomes would be the same for both groups. B. Before the intervention, the average health outcomes were the same for both groups. C. After the intervention, the average health trends would be the same for both groups. D. In the absence of the intervention, theaverage health trends would be the same for both groups.