If _j, an Unbiased Estimator of _j, Is

question 21

Multiple Choice

If _j, an unbiased estimator of _j, is consistent, then the:

• A)distribution of _j becomes more and more loosely distributed around _j as the sample size grows.
• B)distribution of _j becomes more and more tightly distributed around _j as the sample size grows.
• C) distribution of _j tends toward a standard normal distribution as the sample size grows.
• D) distribution of _j remains unaffected as the sample size grows.

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Definitions:

Automatic Stabilizers

Programs such as unemployment insurance benefits and taxes that are already on the books to help alleviate recessions and hold down the rate of inflation.

Government Surplus

The situation where a government's revenue exceeds its expenditures during a given timeframe, indicating a positive fiscal balance.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Excessive Investment

When the level of investment in an economy exceeds what is considered sustainable or optimal, potentially leading to economic imbalances.