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Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u.
Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat)
where b1 is the coefficient estimate from the regression of y on X1.
Steady state in a calibration of the US economy in 2000. In this problem, suppose that rate of growth of the work force is n = 0.017 and there is no exogenous technological progress.
Assume that you test the Linder hypothesis by comparing Germany's absolute difference in per capita income from each of its trading.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Illustrate what would be a monetary policy prescription to reduce or eliminate deflation. How would deflation affect your business or a business you are familiar with.
Illustrate what sources of information were researched and utilized. What economic measures are commonly used in discussions of the health of the economy.
Consider the marketplace for personal computers. Suppose that the demand is stable: the demand curve doesn't change.
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
You will be asked to collect five (5) newspaper articles relating to subjects we are covering in the class. As we cover the various chapters you should be actively searching newspapers/magazines to find articles.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
Illustrate what is the short-run equilibrium real GDP and price level. Does Japan have an inflationary gap or a recessionary gap and what is its magnitude.
For which of the subsiquent items will the advertising elasticity of demand be relatively higher.
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