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Consider the following modi?ed Keynesian model of income deter- mination: Ct = β10 + β11 Yt + u1t , It = β20 + β21 Yt + β22 Yt-1 + u2t Yt = Ct + It + Gt
where C = consumption expenditureI = investment expenditureY = incomeG = government expenditureGt and Yt-1 are assumed predetermined
a. Obtain the reduced-form equations and determine which of the pre- ceding equations are identi?ed (either just or over).
b. Which method will you use to estimate the parameters of the over- identi?ed equation and of the exactly identi?ed equation? Justify your answer.
Define the cross-price elasticity of demand?
Briefly explain why empirical consumer demand studies such as Patrick McCarthy's study of automobile demand are relevant to managers?
Which of the following is a main element typically included in a "to make" cost analysis?
Suppose the commercial banks keep no excess reserves, and people deposit all their money they receive into the banking system. Suppose the required reserve ratio is 0.05 (5%). Suppose the Federal Reserve wants to increase the monetary base by $2,000,..
The "Baby Boomers" are in their retirement age. What affect might this have on the productive capacity of a country's labor force.
Suppose that a student who has completed her undergraduate degree and is planniing pursuing an MBA as a full time student. The cost of the second year MBA program she is planning is $45,000 for tuition.
You are to select a newspaper/magazine/web article for economic analysis. The article must relate to Micro Economics. The article must also have been written after 1st June, 2012. You are to apply your economic theory to explain and analyse the newsp..
Discuss the implications on the dead weight loss
The assignment problem is relates to economic and the problem is explains about the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan".
1. suppose a banks balance sheet looks as followsnbspnbspnbspnbspassetsliabilitiesreservesnbspnbsp
True, False, or Uncertain? Explain why. Suppose the demand function for some good X is given by QDx = 1000 - 5Px +3Py +12M, where QDx is the quantity of x demanded, Px is its price, Py is the price of good Y, and M is average consumer income. This go..
Use a simple partial equilibrium supply and demand model of international trade to explain
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