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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.
EM13250 solution needed
Corporatism: A system for managing income distribution andwage determination, in that wage levels are determined centrally (across industries or even whole countries) on the founda
1. Sam Smith owns an internet radio company that has subscribers in Houston and Dallas. The demand functions for the 2 markets are: Q(Houston) = 50-0.35P(Dallas) Q(Dallas) = 80-0.
Efficiency of exchange
What are the basic economic institutions? There are two fundamental economic institutions which have been so far used into the real world are as: a. Market economic institut
so this question asks for the deadweight loss if an institution decided to provide this service free of charge. I was wondering if this will achieve the socially efficent level or
what the company do?
Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this
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China had to convert its yuan into dollars. Does that cause the dollar to appreciate or depreciate?
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