Consider the following regression model: y = 
0+ ![]()
data-mathml="%3Cmath%20style%3D%22font%2Dfamily%3A%27Times%20New%20Roman%20Greek%27%22%20xmlns%3D%22http%3A%2F%2Fwww%2Ew3%2Eorg%2F1998%2FMath%2FMathML%22%3E%3Cmstyle%20mathsize%3D%2215px%22%3E%3Cmi%3E%26%23946%3B%3C%2Fmi%3E%3C%2Fmstyle%3E%3C%2Fmath%3E" src="@@PLUGINFILE@@/ppg__cognero__Ch_02_The_Simple_Regression_Model__media__90b98f2a-57e8-4e9f-a789-d7860323f681.PNG" style="vertical-align:middle;" />1x1 + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?
A. The sum, and therefore the sample average of the OLS residuals, is positive.
B. The sum of the OLS residuals is negative.
C. The sample covariance between the regressors and the OLS residuals is positive.
D. The point (
) always lies on the OLS regression line.
Answer: D
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In the long-run, the quantity of real GDP supplied increases when the price level increases
Indicate whether the statement is true or false
Payments that users (consumers) are required to make if they want to receive certain services provided by the government are called
a. tax deductions. b. transfer payments. c. user charges. d. sales taxes.
Figure 5-13
In Figure 5-13, the consumer is better off
a.
at A than at E.
b.
at B than at D.
c.
at any point on U2 than at any point on U1.
d.
All of the above are correct.
The aggregate demand curve shows the:
A. inverse relationship between the price level and real GDP purchased. B. direct relationship between the price level and real GDP produced. C. direct relationship between real balances and real GDP purchased. D. inverse relationship between interest rates and real GDP produced.