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Consider the data on PDI (personal disposable income) given in Table 21.1. Suppose you want to fit a suitable ARIMA model to these data. Outline the steps involved in carrying out this task.
What factors might make either of the two simple models, the excise tax on rentals or the tax on capital, less likely to predict the distribution of the tax burden in the re
At the symmetric equilibrium, what are the industry output and price levels? What are the equilibrium per firm output and profit levels? What is the equilibrium social welfa
Suppose that the Phillips curve is given by ft-?t^e= 0.1-2ft where ft^e=ft-1 Suppose that inflation in year t-1 is zero. In year t, the authorities decide to keep the unemplo
It stands for fun - while Sir Richard Branson's Virgin is nothing if not youthful and irreverent. It can sell anything its founder comes up with - records, airlines, financi
Before Sarah quit her job as a carpenter, she was earning $35,000 per year. She rented a building for $12,000 per year and opened a cabinet shop. She spends $148,000 per yea
Suppose that the depreciation rate remains constant at δ = 0.08, while the saving rate is reduced by half, to s = 0.16. What is the new steady-state output per worker?
A number of countries are lining up to join the EU. What difficulties might be created within the EU from the accession of the lower-income economies of central, eastern and
assume that all other banks hold only the required amount of reserves. if First national decides to reduce its reserves to only the required amount, by how much would the ec
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