Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 24, Problem 38RQ
What is the Keynesian zone of the SRAS curve? How much is the
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Model
Residual
6678.74195
203982.577
1 6678.74195
795
256.581858
F(1, 795)
Prob > F
R-squared
26.03
=
0.0000
-
0.0317
Adj R-squared
0.0305
Total
210661.319
796 264.649898
Root MSE
16.018
wage
Coefficient Std. err.
t
P>|t|
[95% conf. interval]
bachelors
_cons
6.633368
24.0767
1.300169
.6577875
5.10
36.60
0.000
0.000
4.081198
9.185537
22.78549
25.3679
reg wage bachelors educ
Source
ss
df
MS
Number of obs
797
Model
Residual
54084.0835
156577.235
794
2 27042.0417
197.200548
F(2, 794)
Prob > F
R-squared
137.13
0.0000
0.2567
Adj R-squared
0.2549
Total
210661.319
796 264.649898
Root MSE
14.043
wage
Coefficient Std. err.
t
P>|t|
[95% conf. interval]
bachelors
educ
cons
-.3159352 1.224789
3.063893 .1976123
-17.99629 2.774185
-0.26 0.797
15.50 0.000
-6.49 0.000
-2.720143
2.088273
2.675989 3.451798
-23.4419 -12.55069
Select the one incorrect answer.
O The effect of having a bachelor's degree on
wage is overestimated in the simple linear
regression.
In the multiple linear regression, the effect
of…
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
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...
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- 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 25805.9arrow_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, 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_forward
- 4. 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_forwardSuppose 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_forward
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