Which of the following statements is true of dynamically complete models?
A. There is scope of adding more lags to the model to better forecast the dependent variable.
B. The problem of serial correlation does not exist in dynamically complete models.
C. All econometric models are dynamically complete.
D. Sequential endogeneity is implied by dynamic completeness..
Answer: B
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In which of the following markets are buyers likely to have private information?
A) The market for used cars B) The market for fresh fruits and vegetables C) The market for banking services D) The market for health insurance
Briefly describe and discuss the different ways a natural monopoly can be regulated: Marginal cost pricing, average cost pricing, rate of return regulation, and price cap regulation
What will be an ideal response?
According to the neoclassical growth model, if a country makes a policy change to increase its savings rate, in the new steady state:
a. output per worker will grow faster than before. b. output per worker will grow at the rate of technology growth. c. capital per worker will be permanently higher. d. all of the above.
Inadequate health care and disease treatment impede development for all of the following reasons except:
A. they reduce the ability of a person to care for others. B. developing countries lack the resources and infrastructure to deal with these problems. C. they reduce the ability of a person to work. D. they contribute to overpopulation.