Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N). In a graph with the real wage on the vertical axis, and the level of employment on the horizontal axis, the wage-setting relation will now be
A) a vertical line.
B) a horizontal line.
C) an upward sloping line.
D) a downward sloping line.
E) a curve that first slopes upward, then downward.
C
Economics
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In November 2012, concern was raised about Spain's sovereign debt. Make use of a graph of the bond market to show how this would affect the price of Spanish bonds
What will be an ideal response?
Economics
The following is not a consequence of Xt and Yt being cointegrated:
A) if Xt and Yt are both I(1), then for some ?, Yt – ? Xt is I(0). B) Xt and Yt have the same stochastic trend. C) in the expression Yt – ? Xt , ? is called the cointegrating coefficient. D) if Xt and Yt are cointegrated then integrating one of the variables gives you the same result as integrating the other.
Economics