Examlex
The OLS estimators of the coefficients in multiple regression will have omitted variable bias a. only if an omitted determinant of is a continuous variable.
b. if an omitted variable is correlated with at least one of the regressors, even though it is not a determinant of the dependent variable.
c. only if the omitted variable is not normally distributed.
d. if an omitted determinant of is correlated with at least one of the regressors.
Real Output
The quantity of goods and services produced, adjusted for inflation, reflecting the true volume of an economy's production.
Active Approach
A management strategy involving ongoing adjustments and proactive measures in portfolio or economic policy decisions to achieve desired outcomes.
Recessionary Gap
A situation where the real GDP is lower than the potential GDP at the full employment level, resulting in underutilized resources and higher unemployment.
Public Policy
A course of action or inaction chosen by public authorities to address a given problem or interrelated set of problems.
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