It is advisable to use clustered standard errors in panel regressions because
A) without clustered standard errors, the OLS estimator is biased
B) hypothesis testing can proceed in a standard way even if there are few entities (n is small)
C) they are easier to calculate than homoskedasticity-only standard errors
D) the fixed effects estimator is asymptotically normally distributed when n is large
Answer: D
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In the 2000s, government budget deficits became larger as a percent of GDP
a. True b. False
Venture capital reduces the rate of economic growth.
Answer the following statement true (T) or false (F)
If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.