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a. What is the difference between trend-stationary and difference-stationary processes?
b. Why is this an important distinction, and how does our belief regarding which of these best characterizes output affect our forecasting strategy?
c. Perron suggested that output might best be characterized as trend stationary with breaks. How does this help resolve the question of the importance of shocks to aggregate demand?
Let the market demand for rye bread be given by Q = 500 I - 250Prye 400Pwheat, where Q is monthly demand in number of loaves, I is average monthly income in dollars, Prye is the price of a loaf of rye bread, and Pwheat is the price of a loaf of wh..
Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic
Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?
The amplifier depicted in Fig. 12.95 consists of a common-gate stage (M1 and RD) and a feedback network (R1, R2, and M2). Assuming R1 + R2 is very large and λ = 0, compute the closed-loop gain and I/O impedances.
Explain the viewpoints of classical and Keynesian economists.
Suppose the government wants to set a ceiling price that induces the monopolist to produce the largest possible output. What price will accomplish this goal?
Historical records show that 70 structures with 800 square feet of floor space and 8 foot ceilings were produced in 1999.Then the materials cost for each structure was $25,000 and the cost capacity factor is 0.65. Cost index values for 1999 and 20..
Imagine that a contingent valuation study is done asking residents about their willingness to pay for a new Whirlydome in the twin cities metropolitan area, which has about 400,000 households. The households that were told the dome would cost them..
Compute the output that can be produced in this firm using 1 through 9 units of labour by substituting these numbers into the production function.
Consider the following model of a closed economy (Smallville): MPC = 0.8 - 0.01Y (marginal propensity to consume) C = MPC x YD (consumption function) YD = (Y - T) (disposable income) I = 500 (investment spending) G = 1,500 (government spending)
Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.
Suppose a country can produce a maximum of 10,000 jumbo airliners or 2,000 aircraft carriers. a. What is the opportunity cost of an aircraft carrier b. If another country offers to trade six planes for one aircraft carrier, should the offer be accept..
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