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(Rational Expectations) Suppose that people in an election year believe that public officials are going to pursue expansionary policies to enhance their reelection prospects. How could such expectations put pressure on officials to pursue expansionary policies even if they hadn't planned to?
Explain why the fixed effects estimates are less likely to be biased than the OLS estimates. Explain whether the most reliable estimates in Table1 provide evidence in support of the Peltzman effect.
The constant per unit price of M is $30; the constant per unit price of T is $20; and Bharat has $300 to spend on these activities. If the price of M rises to $35, what is the appropriate compensating variation.
Problem - Qd = 8000 -2Px + 3Py -4.5M. What is the own-price elasticity of demand? What is the cross-price elasticity of demand? Fully explain
What would be the difference, then, between the two types of trade barriers?
Calculate and compare the sets o n both sides of De Morgan law
julie has preferences for food, f, and clothing, c described by a utility function u(f,c)+f*c. her marginal utilities are Muf=c and Muc=f. suppose that food cost $1 a unit and that clothing costs $2 a unit. julie has $12 to spend on food and cloth..
The theory of optimal commodity taxation argues that equal tax rates should be set across all commodities so as to maximize exigency by ‘‘smoothing taxes.''
How does a change in the tax rate affect this level of income?
A monopolist faces a demand curve given by: P = 220 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $40. There are no fixed costs of production.
If the waiting time before the last eruption was 70 minutes, what is the predicted waiting time before the next eruption?
The Rapid Engine Corporation is a multinational producer os small gasoline and Diesel motors. Rapid hs estimated the given cost experience for a new 3.5hp engine over a sample of 122 observations.
Expenditure Approach to GDP Given the following annual information about a hypothetical country, answer questions a-d. Billions of dalloars Personal consumption expenditures $200 Personal taxes $50 Exports $30Depreciation $10 Government purchases $50
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