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Consider the following model:
This model relates the price of houses to their distance from an incinerator both before and after knowledge the incinerator's construction was known. Y81 is a dummy variable for after the construction project was announced. In order to consider the problem more thoroughly, a more complete model was also estimated:
Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions (Note: It may be possible to compute needed values from more than one output set. In such cases, choose the one that makes the most sense to you and explain your reason.)
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
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Explain how each of the following will affect the relative values of the dollar and the euro:
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are:
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
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