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(a) What are the problems associated with R2 and how can adjusted R2 solve them?
(b) If the regressors in an equation are highly correlated, which measures can be used to solve this problem?
(c) What do you understand by a dynamic model and show all the steps involved in deriving its long-run static equilibrium solution?
(d) Suppose we have a model given by:
log Qt = 42.95 + 0.387 log Kt +0.613 log Lt (1.96) (3.01) (2.19)
Where Q is output, K is capital and L is labour. R2 = 0.78, D-W=2.45, number of observation is 35 years and the values in brackets represent t-ratios.
The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, ii)
use a graphical illustration to describe briefly what the influence of each of the following be on the market supply of labour,(a) an increase in immigrants, (b) a reduction in wag
short run equilibrium of the industry
Real Interest Rate: Interest rate on a loan, adjusted for rate of inflation. Real interest rate represents real burden of an interest payment. Real interest rates should be positiv
Functions and Resources of the Bank The main functions of the Bank are as follows: • to assist in reconstruction and development of the territories of it member-governmen
cartels model of collusive oligopoly
1. Assume that Malaysia can produce cencaluk at 25 bottles per worker and belacan at RM5 per worker. Assume that Indonesia can produce 10 bottles of cencaluk per worker and 20 pack
ppf
#questioSuppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in au
Let''s assume that a monopolist decides to maximize revenue, rather than profit. How does this operating objective change the size of the deadweight loss?
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