The slope estimator, ?1, has a smaller standard error, other things equal, if
A) there is more variation in the explanatory variable, X.
B) there is a large variance of the error term, u.
C) the sample size is smaller.
D) the intercept, ?0, is small.
Answer: A) there is more variation in the explanatory variable, X.
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The product of nominal GDP and the GDP deflator equals the real GDP of a country
a. True b. False Indicate whether the statement is true or false
To try to eliminate a recessionary gap the Fed typically__________ the money supply, and to try to eliminate an inflationary gap the Fed typically __________ the money supply
A) increases; decreases B) increases; increases C) decreases; increases D) decreases; decreases
In the AD-AS model with a long-run potential growth rate of 2%, a 6 percentage point increase in the money supply growth rate will cause the economy's growth rate to be _____ in the long run.
What will be an ideal response?
A demand schedule provides
A. the amount of a good a person wants to sell during a given time period. B. the alternative quantities demanded for a given time period at different possible prices. C. the quantities of a good people are willing to sell every year. D. the amount of a good a person wants at different times of the day.