The "before and after" specification, binary variable specification, and "entity-demeaned" specification produce identical OLS estimates
A) as long as there are observations for more than two time periods.
B) if you use the heteroskedasticity-robust option in your regression program.
C) for the case of more than 100 observations.
D) as long as T = 2 and the intercept is excluded from the "before and after" specification.
Answer: D) as long as T = 2 and the intercept is excluded from the "before and after" specification.
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The concept of net domestic investment refers to ________.
A. the difference between the market value and book value of outstanding capital stock B. the amount of machinery and equipment used up in producing the GDP in a specific year C. gross domestic investment less net exports D. total investment less the amount of investment goods used up in producing the year's output
In the short-run macroeconomic equilibrium
A) real GDP equals potential GDP and aggregate demand determines the price level. B) the price level is fixed and short-run aggregate supply determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand. D) real GDP is always less than potential GDP.
Identify the correct statement. a. In periods of low inflation, real wages are constant but nominal wages decline
b. If the price level increases, real wages will increase. c. If the price level increases, nominal wages will fall. d. In periods of high inflation, real wages change even if nominal wages remain constant. e. If the inflation rate is high, real wages and nominal wages change by the same amount.
When personal income is greater than national income,
a. personal income taxes are less than transfer payments b. personal income taxes are less than Social Security contributions c. income that is earned but not received is greater than income that is received but not earned d. income that is received but not earned is greater than income that is earned but not received e. there is no difference between income that is earned and not received and income that is received and not earned