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In our discussion of short-run exchange rate overshooting, we assumed that real output was given. Assume instead that an increase in the money supply raises real output in the short run (an assumption that will be justified in Chapter 16). How does this affect the extent to which the exchange rate overshoots when the money supply first increases? Is it likely that the exchange rate undershoots?
What are the exogenous variables in the two equations above? what are the endogenous variables
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
If the Canadian production function is Cobb-Douglas with capital's share in total output 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the capital-output ratio is 2.5,
country A has 1500 units of labor and can produce two goods, manufactures and food. A's producers take 5 units of labor to produce one unit of manufactures and 6 units to produce one unit of food.
Define the 2SLS estimator of β, using zi as an instrument for xi. How does this differ from OLS? Find the efficient GMM estimator of β, based on the moment condition E(zi (yi - xiβ)) = 0. Does this differ from 2SLS and/or OLS
Final Examination - Assessment Activity - Week5 - ECO/372 - eCampus In which of the following situations is a budget surplus most likely to occur
What are the profit-maximizing price that High-Tech should charge if they sell each product separately and what is the total price of the two goods?
In March, her income is cut in half to $15, but the price of books returns to $1 and the price of movies returns to $3. Draw her March budget line and shade her budget set.
Use the following informations to comput the inflation rate between the 4th quarter 2010 and 4th quarter 2011. Year: Qtr Nominal GDP(current dollars) Real GDP (2005 dollars) 2010 4 $14, 755.00 ..
Suppose that the signal is no longer available. Which kinds of job will be filled by which types of workers, and at what wages? Who gains and who loses?
If trade barriers hurt the average worker in an economy (due to lower wages), why does government create trade barriers?
Lenny's, a national restaurant chain, conducted a study of factors affecting demand. The following variables were defined and examined for a random sample of thirty of its restaurants:
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