
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 24, Problem 26RQ
What is potential
Expert Solution & Answer

Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the five Types of Arguments do you think best fits your preconceptions of your Argumentative Paper? Why? on addiction
reg avgprice mpgcity
Source
SS
df
MS
Number of obs
F(1, 91)
93
49.76
Model
Residual
3.0345e+09
5.5495e+09
1 3.0345e+09
91 60983890.4
Prob > F
0.0000
R-squared
=
0.3535
Total
8.5840e+09
92
93304579.4
Adj R-squared =
Root MSE
=
0.3464
7809.2
avgprice
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
mpgcity
-1021.944
cons
42366.05
144.8745
3339.859
12.68
0.000
35731.83
49000.27
reg avgprice mpgcity weight
Source
SS
df
MS
Model
Residual
3.6663e+09
4.9177e+09
2 1.8332e+09
90 54640959.2
Number of obs
F(2, 90)
Prob > F
R-squared
Total
8.5840e+09
92 93304579.4
Adj R-squared
Root MSE
93
33.55
0.0000
=
0.4271
0.4144
7392
avgprice
Coef. Std. Err.
t
P>|t|
[95% Conf. Interval]
mpgcity
weight
-290.7165
8.262269
255.0389
2.429698
cons
622.5692
12676.12
-1.14
3.40
0.05
0.257
0.001
0.961
-797.3957
215.9627
3.43525
-24560.76
13.08929
25805.9
reg avgprice mpgcity
Source
SS
df
MS
Number of obs
F(1, 91)
93
49.76
Model
Residual
3.0345e+09
5.5495e+09
1 3.0345e+09
91 60983890.4
Prob F
=
0.0000
R-squared
=
0.3535
Total
8.5840e+09
92 93304579.4
Adj R-squared
Root MSE
=
0.3464
7809.2
avgprice
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
mpgcity
_ cons
-1021.944
42366.05
144.8745
3339.859
12.68
0.000
35731.83
49000.27
reg avgprice mpgcity weight
Source
SS
df
MS
Number of obs
93
F(2, 90)
33.55
Model
Residual
3.6663e+09
4.9177e+09
2 1.8332e+09
90 54640959.2
Prob > F
R-squared
=
0.0000
=
0.4271
Total
8.5840e+09
92 93304579.4
Adj R-squared
Root MSE
=
=
0.4144
7392
avgprice
Coef. Std. Err.
t
P>|t|
[95% Conf. Interval]
mpgcity
weight
-290.7165
255.0389
cons
8.262269 2.429698
622.5692 12676.12
-1.14 0.257
3.40 0.001
0.05 0.961
-797.3957
215.9627
3.43525
-24560.76
13.08929
25805.9
Chapter 24 Solutions
Principles of Economics 2e
Ch. 24 - Describe the mechanism by which supply creates its...Ch. 24 - Describe the mechanism by which demand creates its...Ch. 24 - The short run aggregate supply curve was...Ch. 24 - In the AD/AS model, what prevents the economy from...Ch. 24 - Suppose the U.S. Congress passes significant...Ch. 24 - Suppose concerns about the size of the federal...Ch. 24 - How would a dramatic increase in the value of the...Ch. 24 - Suppose Mexico, one of our largest trading...Ch. 24 - A policymaker claims that tax cuts led the economy...Ch. 24 - Many financial analysts and economists eagerly...
Ch. 24 - What impact would a decrease in the size of the...Ch. 24 - Suppose, after five years of sluggish growth, the...Ch. 24 - Suppose the Federal Reserve begins to Increase the...Ch. 24 - If the economy is operating in the neoclassical...Ch. 24 - If the economy is operating In the Keynesian zone...Ch. 24 - What is says law?Ch. 24 - What is Keynes; law?Ch. 24 - Do neoclassical economists believe in Keynes law...Ch. 24 - Does Says law apply more accurately in the long...Ch. 24 - What is on the horizontal axis of the AD/AS...Ch. 24 - What is the economic reason why the SRAS curve...Ch. 24 - What are the components of the aggregate demand...Ch. 24 - What are the economic reasons why the AD curve...Ch. 24 - Briefly explain the reason for the near-horizontal...Ch. 24 - Briefly explain the reason for the near-vertical...Ch. 24 - What is potential GDP?Ch. 24 - Name some factors that could cause the SRAS curve...Ch. 24 - Will the shift of SRAS to the right tend to make...Ch. 24 - What is stagflation?Ch. 24 - Name some factors that could cause AD to shift,...Ch. 24 - Would a shift of AD to the right tend to make the...Ch. 24 - How is long-term growth illustrated in an AD/AS...Ch. 24 - How is recession illustrated in an AD/AS model?Ch. 24 - How is cyclical unemployment illustrated in an...Ch. 24 - How is the natural rate of unemployment...Ch. 24 - How is pressure for inflationary price increases...Ch. 24 - What are some of the ways in which exports and...Ch. 24 - What is the Keynesian zone of the SRAS curve? How...Ch. 24 - What is the neoclassical zone of the SRAS curve?...Ch. 24 - What is the intermediate zone of the SRAS curve?...Ch. 24 - Why would an economist choose either the...Ch. 24 - On a microeconomic demand curve, a decrease in...Ch. 24 - Economists expect that as the labor market...Ch. 24 - If new government regulations require firms to use...Ch. 24 - During spring 2016 the Midwestern United States,...Ch. 24 - Hydraulic fracturing (tracking) has the potential...Ch. 24 - Some politicians have suggested tying the minimum...Ch. 24 - If households decide to save a larger portion of...Ch. 24 - If firms become more optimistic about the future...Ch. 24 - If Congress cuts taxes at the same time that...Ch. 24 - Suppose the level of structural unemployment...Ch. 24 - If foreign wealth-holders decide that the United...Ch. 24 - The AD/AS model is static. It shows a snapshot of...Ch. 24 - Explain why the short-run aggregate supply curve...Ch. 24 - Explain why the short-run aggregate supply curve...Ch. 24 - Why might it be important for policymakers to know...Ch. 24 - In your view, is the economy currently operating...Ch. 24 - Are Says law and Keynes law necessarily mutually...Ch. 24 - Review the problem in the Work It Out titled...Ch. 24 - The imaginary country of Harris Island has the...Ch. 24 - Table 24.4 describes Santhers economy. Plot the...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Asset Retirement Obligation, Disposal. Buckner Chemical Products reported the following Information on Its late...
Intermediate Accounting (2nd Edition)
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (12th Edition)
Quick ratio and current ratio (Learning Objective 7) 1520 min. Consider the following data: COMPANY A B C D Cas...
Financial Accounting, Student Value Edition (5th Edition)
Questions For Review
12-4. How is the concept of the value package useful in marketing to consumers and industr...
Business Essentials (12th Edition) (What's New in Intro to Business)
S6-2 Determining inventory costing methods
Ward Hard ware does not expect costs to change dramatically and want...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
The amount owned by the short put option holder. Introduction: Option is a contract to purchase a financial ass...
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Knowledge Booster
Similar questions
- The esimated regression equation is as follows rent = 412 0.00013pop (18.17) (0.00015) The numeric value in the parenthesis represents standard error. (For example, Var(1) = 0.00015) Choose all correct answer Significance level is 1% B₁ is not statistically significant B₁ is statistically significant Confidence Interval does include 0 There is no strong evidence to reject the null hypothesis of no effect of population on rent. There is strong evidence to reject the null hypothesis of no effect of population on rent." Confidence Interval does not include 0 010arrow_forwardThe esimated regression equation is as follows rent = 412 0.00013pop (18.17) (0.00015) The numeric value in the parenthesis represents standard error. (For example, V Var(61) = 0.00015) Choose one correct answer 0.05 Pvalue < 0.1 P value <0.01 0.01 Pvalue < 0.05 0.1 < Pvaluearrow_forward4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of oranges in Honduras. The world price (PW��) of oranges is $535 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. A graph plots domestic supply and demand for oranges in Honduras with price in dollars per ton on the y-axis ranging from 500 to 850 in increments of 35 and quantity in tons of oranges on the x-axis ranging from 0 to 400 in increments of 40. The graph plots a downward sloping straight line curve labeled domestic demand ranging from (0, 850) to (400, 500),…arrow_forward
- Suppose you are working as a manager of an organic grocery store and want to analyze how income affects grocery spending. In the dataset, grocery_spending measures the amount spent on groceries in dollars, and income represents individual income, also measured in dollars. The following regression results present estimates from two different specifications. reg grocery_spending income Source SS df MS Model Residual 20685432.5 29227282.9 1 20685432.5 9,998 2923.31295 Number of obs = F(1, 9998) Prob > F R-squared => 10,000 7076.02 0.0000 Total 49912715.4 9,999 4991.77071 Adj R-squared = Root MSE = 0.4144 54.068 grocery_sp~g Coefficient Std. err. t P>|t| [95% conf. interval] income _cons 0033984 .0000404 84.12 2113.24 1.144063 1847.14 0.000 0.000 .0033192 2110.998 .0034776 2115.483 ⚫ gen Inincome-In (income) .reg grocery_spending Inincome Source SS df MS Number of obs = 10,000 Model Residual 24748934.7 25163780.7 9,998 1 24748934.7 2516.88144 F(1, 9998) Prob > F R-squared = 9833.17 " =…arrow_forwardBoth the level-level and level-log regression models presented above use the same number of observations. What does this suggest about the variables used in each model?arrow_forwardCalculate the R-squared value for the missing section. (Round totwo decimal places. You do not need to show your work.) Based on this answer, which model specification provides a better fit to the data? Why? On the level-level model specification, what is the null hypothesiswe would like to reject? Briefly describe the null hypothesis in words.arrow_forward
- You are working at DoorDash and want to understand how delivery time affects the amount of tips received. Tips are measured in dollars, and delivery time is measured in minutes. Specifically, you run the following regression. Tips = 3 + ẞ₁Time + u 0 1 Choose all the correct answers: (a) ẞ represents the average delivery time when tips are zero from the population data 0 (b) B₁ represents the causal effect of delivery time on tips, assuming the zero conditional mean assumption holds B (c) If E[U] = 0, Tips = ß + ß> 0 (d) The model assumes a linear relationshiparrow_forwardThe following figure depicts sampling distribution of 3 distinct estimators from a population of data of 100,000 observations. (Assume that the independent and identically distributed (i.i.d.) assumption holds) Sampling Distributions of Estimators 80'0 0.02 Density 0.04 0.06 0.00 20 20 -- x= (x1+x2)/2 2(X₁+X₂+X3+X4) x= 5 x=(x1+x+x+x)/4 Population Mean 40 60 80 100 120 Estimator Value Choose all the correct answers. (a) is unbiased (b) is unbiased (c) is unbiased (d) All of the estimators are biasedarrow_forwardThe UCSC admission committee is interested in how the distance from a student's hometown to UCSC affects their likelihood of enrolling UCSC. They want to run a simple linear regression, where enroll is an indicator variable equal to 1 if a student enrolls at UCSC, and 0 if the student applied but did not enroll. distance measures the distance in miles. They tried to run a regression as follows. enroll = B + B₁ distance + u 0 1 However, the reg command suddenly stopped working, and they were only able to calculate summary statistics. They found that enroll = 0.23, distance = 54, s = =-82, s = 91, and s = 0.23 distance,enroll distance enroll Find B and B Round to two decimal places. (Just enter the number. You do not need to show your work) Write a verbal interpretation of B and Barrow_forward
- Suppose the estimated regression equation is shown as below = 17.32 -0.15 Time Tips = a. If it takes 40 minutes and a delivery man received $10, how much is the residual? (Round to two decimal places if necessary) b. One delivery took 30 minutes, and another took an hour. How much higher is the predicted tip for a delivery that took 30 minutes compared to one that took an hour?arrow_forwardChoose all the correct answers about the sampling distribution of from the regression below grocery_spending = a + a¸ income + u 0 grocery_spending = a + a income 0 1 (a) If sample variance of income is 0, then a is not defined because the denominator equals 0. (b) If both the sample size and variance of error increase, the variance of larger holding the sample variance of income constant. (c) If the Zero Conditional Mean assumption holds, а1 = а1 (d) We can derive a and a by minimizing the sum of squared residuals. a₁ becomesarrow_forwardSuppose conditional expectation of Y, monthly profit of fitness clubs given X, the number of members, is as follows. E[ Profit | Members] = -20,000 + 50Member Choose one correct answer: (a) If the number of members is less than 400, all fitness clubs make a negative profit. (b) If the number of members is exactly 400, then a fitness club breaks even (i.e., makes zero profit). (c) A fitness club with 500 members makes more profit than one with 450 members. (d) On average, profits tend to increase as the number of members increases. Find E[Profit] if E [Member] = 700. Show the steps of your calculation.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningBrief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningSurvey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning

Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning

Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning


Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning


Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning