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What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left?
AD shifts to the right when any component of AD enhances autonomously; e.g., if
a) Consumers become more willing to spend at each price level;
b) There are autonomous enhances in investment due to better business prospects;
c) The government spends more, or decreases taxes; net exports rise at all prices (due to say an increase in the quality of domestic goods relative to foreign goods). If above mentioned facts are reversed, AD will shift to the left.
(a) What is meant by heteroscedasticity and what are the consequences of applying OLS estimation in its presence? (b) Explain in details the Generalised least Square procedure
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The production function for a firm is expressed as follows: Q = 800K - K 2 +5KL - 7750L + 10,000 Where Q is quantity of units manufactured, K and L are units of capital and
Deviation in graph
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In fall 2006, Pace University raised its annual tuition from $24,750 to $29,750. Freshman enrollment declined from 1500 in fall 2005 to 1110 in 2006. assuming the demand curve did
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