In presence of serial correlation, the OLS variance formula accurately estimates the true variance of the OLS estimator.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: In presence of serial correlation, the OLS variance formula either understates or overstates the true variance of the OLS estimator.
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Why would a policymaker risk inflation if workers can just renegotiate their wages?
A) There is a change that workers will not fully anticipated the impact of the policy. B) The policymakers want to look like they are actively involved in the economy. C) Inflation is not a high price to pay in the economy. D) The policymakers do not believe that the workers can renegotiate.
A positive economic statement:
a. contains personal and social value judgments. b. is always a mathematical expression. c. should never be used by an economist. d. is proper provided the advocator is clear the position rests on personal assessment. e. is an unbiased report of the facts of the economy.
One existing government program that works much like a negative income tax is the Earned Income Tax Credit
a. True b. False Indicate whether the statement is true or false
Who gains in a voluntary trade?
What will be an ideal response?