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Question1. Economic growth, as examined through raise in real GDP per capita, is a target for most countries. This is often interpreted as an raise in economic welfare for citizens. How would you evaluate this assertion? If there are reasons to dispute it, why is it a nearly universally recognized goal? Are there better methods for measuring economic welfare? How would you measure it?
Question2. Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic life? If not, what would it take to eliminate them? If they are unavoidable, what types of business can benefit from them? How would a recession affect your firm?
An analysis of stock market manufactures the following data about the returns of two stocks.
Suppose you have some information on a sample of investment bankers, and are interested in impacts of height and of seniority on their success.
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
The Australian government administers two programs that affect the market for cigarettes.
Recall from introductory economics that an raise of $1 in government spending may raise GDP through more than $1. The exact value by which GDP goes up is multiplier.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
The joint probability distribution on the returns of two securities X and Y is demonstrate in the table below.
Determine what should you do to maximize benefits with respect to values after you acquire a substitute product. Which values should you change more?
The price earnings ratio for each stock is determined through dividing the value of a share of stock by the earnings per share reported by the firm for the most recent 4-quarters.
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
The local operations manager for IRS must decide whether to employee 1, 2, or 3 temporary employees. He determine that net revenues will vary with how well taxpayers comply with new tax code.
Answer the following questions using the above data. Compute autonomous aggregate demand and compute the short-run output.
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