The study of aggregate economic behavior is referred to as:

Infeasible GLS

A) requires too much memory even for today's PCs. B) uses complicated interative techniques. C) cannot be calculated since it also uses quasi differences for Xt. D) assumes the parameters of the error autocorrelation process to be known.

The reason externalities distort the allocation of resources is that

a. too few goods are usually produced. b. firms often go out of business because of the externality. c. a firm's private costs do not reflect the social cost of production. d. regulating externalities uses scarce resources.