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Suppose you detect heteroskedasicity and /or auto correlated errors in your regression. What is the difference between (I) calculating robust errors versus (ii) conducting a weighted least squares or feasible generalized least squares analysis. What are the pros and cons of each approach? Give an example of when each might be preferred over the other.
Suppose that output is $2.2, the natural rate is 4.5%, potential GDP is $2.32, inflation was 3% last year expectations arc adaptive, and the phillips curve equation is pi = pi + 0.5(Y - Y*)/Y*. What will the inflation rate be this year?
Explain why some people support unions whereas others oppose them. What advice would you give to an employer who wants to adopt some form of employee participation program but is concerned about the legality of such program?
You are the manager of a monopolistically competitive firm. The inverse demand curve you face is P = 50 – 4Q. Your cost function is C(Q) = 10 + 2Q. What level of output should you produce to maximize profits? What is your profit and what will happen ..
Use Appendix A at the back of the text to show the compound annual rate of growth in earnings (n=4).
Anna spent two thirds of her instance sewing dresses, and the other third of her time doing administrative work. Prepare Balance Sheet for Manning Style.
Many small companies use accounts receivable as collateral to borrow money for continuing operations and meeting payrolls. If a company borrows $230,000 now at an interest rate of 16.00% per month, but the rate changes to 18.00% per month after 6 mon..
Describe how each of these activities affects government households as well as businesses.
How would quantity demanded and the price of this product be measured? Explain the relationship between the individual consumers’ demand and the market demand
q1. the lojack car recovery system allows the police to track stolen cars. as a result they not only recover 90 percent
Government could address the problem with increasing government spending, cutting taxes, or both. If the government decided to increase spending to address the problem, by how much should spending be increased? What could happen to make the policy y..
Indonesia's infrastructure is in bad shape. [According to a recent article in The Economist (May 9th 2015): "companies spend 50% more on logistics than those in Thailand and twice as much as those in Malaysia."] The government of Indonesia cut fuel s..
Robert and Janet are discussing unemployment and inflation in their country. On the basis of a recent newspaper report, Robert claims that a 5% reduction in unemployment will lead to a 2% rise in inflation. On the other hand, Janet insists that infla..
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