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Suppose that regression model is yt = mu + epsilon t where E[ epsilon t|xt] = 0, Given a sample of observations on yt and xt what is the most efficient estimator of mu? Is this estimator unbiased? What is its variance? What is the OLS estimator of mu?, and what is its variance?. Prove that the estimator in part (a) is at least as efficient as the estimator in part (c).(bonus) (Hint: use Cauchy-Schwarz inequality)
Illustrate what ways do health care expenses affect economy. Illustrate what are economic advantages to government involvement in healthcare.
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
inflation was 3% last year, expectations are adaptive, and the phillips curve equation is pi = pi + 0.5 (Y -Y*)/Y*. What will the inflation rate be this year?
Assume there are two firms in a market who each simultaneously choose a quantity.
Illustrate what would happen to the profits CPI makes via their toothpaste division.
One point made is that most demand curves are downward sloping. Can you think of any situation where an individual's demand curve for a product is upward sloping.
Professional sports players are generally paid much more than farmers, factory workers, engineers also teachers.
Use a short-run Phillips curve to Explicate why the inflation rate may decrease over the course of 2009. Under Illustrate what circumstances might the inflation rate not decrease during 2009.
Discuss what happens to equilibrium price and sales. Explain why or why not this makes sense in the real world.
Suppose the real side of an economy is characterized by: Y = 80K1/2 L1/2 K=100 and L= 100 G = 3000 T = 3000
According to the rule for optimal input usage, a film should hire a person as long as her marginal income product is greater than her marginal cost to the company.
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
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