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(a) What are the problems associated with R2 and how can adjusted R2 solve them?
(b) If the regressors in an equation are highly correlated, which measures can be used to solve this problem?
(c) What do you understand by a dynamic model and show all the steps involved in deriving its long-run static equilibrium solution?
(d) Suppose we have a model given by:
log Qt = 42.95 + 0.387 log Kt +0.613 log Lt (1.96) (3.01) (2.19)
Where Q is output, K is capital and L is labour. R2 = 0.78, D-W=2.45, number of observation is 35 years and the values in brackets represent t-ratios.
Question : (a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether c
how to make a stand based on question?
prove the theorm with the help of diagram
Q. Can you explain about Counterfactual? The ‘base case' or counterfactual is a statement of what could have happened without policy intervention, or if the policy intervention
use of diagram how the price mechanism operates to allocate scarce resources. use examples to illustrate the answer.
Structuralist Economics:Its a form of heterodox economicsthat emphasizes relationships betweenincome distribution, effective demand and political and economic power. Structures:
Hotel rooms go for $100/room and sell 1000/day; if taxed at $10/room and rate goes to $108 and 900 rooms are sold, what''s the tax revenue and dead weight loss?
steps for law of coservation of mass
EXPLAIN KINKED DEMAND CURVE
Graph the following example and answer the questions: The United States and Japan only produce two goods. They have the same fixed resources and they are equally efficient, and bo
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