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Over the past few years there has been much concern about falling housing prices, and some policy makers have argued that the government should put a floor under prices so that they stop falling. Suppose that in a given community, the supply and demand of housing are given by the following equations: S= 100P - 100 D = -50P + 1400, where S is quantity supplied (in thousands), D is quantity demanded (in thousands), and P is the price per home (in tens of thousands). Suppose that the price is currently 15. In what direction would you expect prices to be moving? What are the equilibrium price and quantity? How much money would be spent on housing in this community in equilibrium? (Employ your diagram to help you think about the problem, but use algebra to get your answer.)
Utility Maximisation: Graphical Presentation Let consider a two-commodity world, x 1 and x 2 representing good I and good II respectively. p 1 and p 2 are the prices o
Determine the main target of monetary policy Since 1997 'official' main target of monetary policy has been to 'hit' inflation rate target set by government. Though since the o
Firm effects are more important the industry effects. What does this mean? Can you think of situations where this might not be true?
1. Practice identification of proper analysis type (1-Sample Z, 1-Sample t, 2-Sample t, Paired t, etc). 2. Practice hypothesis testing. 3. Practice interpretation of sta
The below diagram demonstrates how all the variables are determined in classical model: Figure: Determination of all the variables in the classical model a) Start at
the uses of production function
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Elplain the casual factors of the traditional business cycle and its effects on sectors of the economy
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