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How can having panel data (with T=2 and n sufficiently large) help solve the omitted variables problem if the omitted variables are time invariant (don’t vary over time)?
To what degree is the public debt a burden to future generations? Suppose income taxes and unemployment compensation were cut by an equal amount. How would aggregate demand be affected? As late as 1992, we were running budget deficits of nearly $300 ..
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
Suppose that the Bureau of Labor Statistics issued statistics about the population and labor as the following:
the participation rate 60 percent, 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
If total mortality among children remains constant whereas the incidence of that mortality shifted from late childhood to untimely rates of fertility declined.
Discuss the development of industry, transportation, and urban areas in the 19th century. What factor did technology play in this process? How did these developments serve to divide the North and South even further apart? In what ways did these devel..
Suppose that the demand in a particular industry is given by Qd = 500 − 2P. When the market price in the industry is $50 per unit, total demand in the industry is _________. Furthermore, assume that the entire market consists of four firms that share..
Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. Find the marginal utility of domestic travel and foreign travel. Using the marginal uti..
What would you expect to happen to the demand for credit cards by students? What would you expect to happen to the quantity of credit cards issued to students? To the willingness of students to incur debt at the much higher rates of interest charged ..
Suppose a firm has a fixed $100 to spend on K=10, W=5. What combinations of inputs can the firm buy? What is the equation for the line that represents all of these combinations?
Elucidate what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies which would be appropriate for addressing this situation.
Spacely Sprockets' short-run cost curve is: C(q, K) = + 15K, where q is the number of Sprockets produced and K is the number of robot hours Spacely hires.
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