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Questions:
1. The first WSJ article, written in Spring of 2020, describes the Fed as the most powerful weapon in the government's economic arsenal to revive the economy. Describe the three phases of Fed's crisis response, taken from 2007-09 crisis playbook (Note: we will have plenty to talk about Fed's monetary policy in the upcoming chapters).
2. According to the second WSJ article, the US suffered from very high inflation rate in the seventies. Who was the chair of the Fed in 1970s, and how did his view contribute to an uncontrollable inflation? What role did politics play?
3. In what aspect are Jerome Powell's views different from his predecessor? What role does the executive branch play in controlling inflation today?
Design a simple econometric research project
Multiplicative decomposition method
The Australian government administers two programs that affect the market for cigarettes.
Solve the forecast model
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
Determine when a competitively produced product generates negative externalities in production, the industry will,
Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.
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