Explain how the different correlations you calculated

Assignment Help Microeconomics

Reference no: EM133319074

Question 1. The correlation between changes in housing net worth and wages is about 0.0998. What does this correlation suggest about whether wages are flexible or fixed?

Question 2. Consider the productivity shock theory of the Great Recession. Explain what this theory states. Give computed data: 1. On average, housing net worth fell by approximately 3,962% from 2006 to 2009. 2.Average growth for tradeable employment: -103%. Average growth for non-tradeable employment (Firms with 1-4 employees):97%. Average growth for non-tradeable employment (Firms with 100+ employees): 183%. 3. The correlation between growth in employment across the tradeable and non-tradeable sectors is about 0.06. 4. The correlation between changes in housing net worth and wages is about 0.0998. Use some of the previous results to cast doubt on it.

Question 3. Explain how the different correlations you calculated in Q8 between housing net worth changes and tradeable vs. non-tradeable employment also casts doubt on the credit supply story. The correlation between changes in housing net worth and tradeable employment growth is about 0.0164 and the correlation between changes in housing net worth and non-tradeable employment growth is about 0.262. You can assume that these two sectors are completely the same except for whether they sell their goods locally or to a national market.

Reference no: EM133319074

Questions Cloud

Discuss the current populist movement a threat or benefit : Discuss the following: Is the current populist movement a threat or benefit for promoting human rights or social justice in America?

Make a website easy on the eyes : BUS 250 American Samoa Community College understand the want to make a website easy on the eyes and flow nicely but from an investors point of view

How 40 seconds of compassion could save a life : Do you think in the US, admission to medical school is still tightly restricted to white, middle-class males? Using online sources, make comparison

Critically analyse how the new banks will go about : Critically analyse how the new banks will go about segmenting the South African market to ensure that they find specific target segments

Explain how the different correlations you calculated : The correlation between changes in housing net worth and wages is about 0.0998. What does this correlation suggest about whether wages are flexible or fixed

Describe how intersectionality relates to t-man life : What are some of the strengths of people with autism that T-Man mentions in the video? What are some of the challenges T-Man faces that are specific to his

Why might this pricing structure be effective : MARK 3336 University of Houston why might this pricing structure be effective for this particular good and what are some potential drawbacks

Discuss three concepts from the consumer behavior class : CIS MISC University of Houston Discuss three concepts from the consumer behavior class that you can leverage to guarantee that 2023 is a success.

Compare the theoretical perspectives on biological aging : Compare and contrast the theoretical perspectives on biological aging, and do you believe a particular theory helps to explain the logic of biological aging

User Account

All Pages