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Suppose we have an unrestricted model (i subscripts are omitted) Y =β1 + β2X2 + β3X3 + β4X4 + β5X5 +u Write down the restricted models and m (number of restrictions) for the following null hypotheses. Make sure your answer is a regression equation that we can estimate. Also state what you would conclude if the null hypothesis is rejected. (a) H0 : β3 =β5 = 0 (b) H0 : β2 = β4 = 1 (c) For this one write the null hypothesis for the following claim and proceed: The effect of one unit increase in X2 is the same as two units increase in X3. (d) H0 : β3 - β4 = 3.
Using the basic IS-LM model in the open economy, analyze the effects of tax increases on the equilibrium output (Y), nominal interest rate (i) and the nominal exchange rate (E). Is the effect of higher taxes on output smaller
Describe the process by which the competitive market establishes a price at which all firms are just earning normal profits.
1 given the following reliabilities of components bridge will not collapse in a series with reliabilities indicated.
Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.
What are the factors that underlie a nation's decision to allow its currency to be determined by free market forces or to be fixed against some standard of value?
describe the market structure in which orange farmers operate and what happens to profits in the long run. how do firms
Demand and supply
Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 4 percent today, a two-year bond paying 5 percent today, a three-year bond paying 5.3 percent today, or a four-year bond paying 5.5 percent today,
How much profit will the monopolist make if she maximizes her profit? What would be the value of consumer surplus in this monopoly market?How much consumer surplus would there be if this market was perfectly competitive? What is the value of the dead..
apple computers cost to produce the components the headphones and the packaging it ships in comes to 21.77 for the ipod
Industry structure is often examine through computing the 4-company Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent.
analyze grossmans model and how effective this model is at predicting the life expectancy of the elderly. apply this
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