Departures from stationarity
A) jeopardize forecasts and inference based on time series regression.
B) occur often in cross-sectional data.
C) can be made to have less severe consequences by using log-log specifications.
D) cannot be fixed.
Answer: A) jeopardize forecasts and inference based on time series regression.
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A perfectly competitive firm's marginal cost exceeds its marginal revenue at its current output. To increase its profit, the firm will
A) lower its price. B) raise its price. C) decrease its output. D) increase its output.
The world real interest rate is
A) set annually by a special commission at the United Nations. B) set annually by a special commission at the International Monetary Fund. C) determined in the international capital market. D) determined daily on the New York Stock Exchange.
Core inflation is all of the following but:
A. a measure of inflation that excludes goods with historically volatile price changes. B. the BLS's official measure of changes in prices. C. Both an overall rise in prices in the economy. D. a measure of inflation that excludes gasoline and food price changes.
In the ordered pair (5, 3), 3 is the
a. horizontal location of the point. b. the slope. c. the x-coordinate. d. the y-coordinate.