Consider a Panel Regression of Unemployment Rates for the G7

Multiple Choice

Consider a panel regression of unemployment rates for the G7 countries (United States, Canada, France, Germany, Italy, United Kingdom, Japan) on a set of explanatory variables for the time period 1980-2000 (annual data) . If you included entity and time fixed effects, you would need to specify the following number of binary variables:

A) 21.
B) 6.
C) 28.
D) 26.