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Consider the following model:
This model relates the price of houses to their distance from an incinerator both before and after knowledge the incinerator's construction was known. Y81 is a dummy variable for after the construction project was announced. In order to consider the problem more thoroughly, a more complete model was also estimated:
Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions (Note: It may be possible to compute needed values from more than one output set. In such cases, choose the one that makes the most sense to you and explain your reason.)
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Describe the following statement: "In competitive market the least-cost production methods are revealed by entry and exit, while in public utility regulation they're revealed by commission rate hearings. It is easier to fool commissi..
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
What is the profit-maximizing price for this firm? On the graph show the area, which area represents the net loss to society resulting from the monopoly power conferred by the patent?
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Field discusses the key threats to sustainable management of forests and agricultural resources. First summarize these threats. Then,
Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?
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