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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.)
Comment on the significance of time trend and seasonality.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
How income may change savings behavior
An increase in input prices for rice production; and an improvement in rice production technology. Use diagrams to analyze the effects of these changes on equilibrium price and quantity.
Explain what accounts for the Hong Kong Monetary Authority behaving differently than the other central banks in emerging Asia.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
The information below explains the real GDP per capita for the country of Utopia for the period of 1975 to 1991.
Evaluate the range of marginal revenues
What are the two problems facing the Bank of Canada in trying to control the money supply precisely?
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