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What happens if Box-Jenkins techniques are applied to time series that are no nstationary? What are the differences between Box-Jenkins and VAR approaches to economic forecasting? In what sense is VAR atheoretic?
The real exchange rate falls to 3 barrels of oil per camera. Although the decline in the real exchange rate makes oil more expensive in terms of cameras, in the short run there is relatively little change in the quantities of exports and imports, ..
Ethanol can be produced from either sugar or corn. A gallon of ethanol cost 90¢ to produce from Brazilian sugarcane and $1 to produce from U.S.corn. The U.S. Department of Agriculture expects 20 percent of the corn harvest to be used to produce et..
A single producer of both products controls the entire market for beverages in this city and is considering strategies to bundle one bottle of health drink with one bottle of fruit juice. Assume that the marginal cost of supplying both varieties i..
Find out the IRR, payback period, Discounted Payback period, NPV, and profitability index if the initial cost is $28,000. Should the company consider investing in the project
Plot the corresponding supply curve on the same graph using the following MC / supply function Q = -7909.89 + 79.1P with the same prices.
(Rationale for Rules) Some economists call for predetermined rules to guide the actions of government policy makers. What are two rationales that have been given for such rules?
Claire wants to maximize profits. What price would she choose? How many units would DEX sell?
An economist suggests that what matters for financial markets is a stable inflation rate, not a zero inflation rate. As long as inflation is stable, all individuals can take this into account in their actions. a. What are the costs associated with..
Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..
Suppose the stock of capital and the workforce are both increasing at 3 percent annually in the country of Wholand. At the same time, real output is growing at 6 percent. How is that possible in the short run and in the long run
What are rational expectations? How do rational expectations differ from perfect foresight? Is monetary policy neutral under both assumptions?
There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. What is the marginal revenue of the 200th gal..
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