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The estimated statistics from the VAR model are not able to be interpreted to solve the problem of this coursework due to reasons that are discussed in the next subchapter. Therefore throughout this paper there will be no formal analysis of the statistics directly from the VAR table. Once the VAR has been estimated, the model will be transformed into the moving average representation version. This representation can then be used to produce the impulse responses of to the other variables in response to an oil price shock. These impulses responses will offer the most information about the correlations between oil prices and the remaining variables. Before analysing the effects of oil price shock by using impulse response functions, there are many key steps which need to be taken to ensure that the goodness of fit of the model and accuracy of the results are of high standard, otherwise the results will be meaningless.
Explain clearly the liquidity preference theory of interest propounded by j.m.keynes
the whole explanation of dpd
An economy shows the following features C=50+0.9(Y-T) T=100 I=100-5i G=100 L=0.2Y-10i M/P=100 X=20 M=10+0.1Y a)Obtain the IS and LM for this economy b)Find out the equilibrium inc
If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price. A) the country will be an exporter of the good. B) the country
A hospital has contracted with and HMO to provide acute care impatient services for $1000 per day, subject to a 10% withhold. The proposed budget for inpatient services is based up
REASONS TO NATIONALISE SARB
Gas Guzzler Motors is one of three major auto producers. It is currently producing 6,000 cars a day, and selling them at a price of $10,000 each. Its marketing department tells it
Suppose that between January 2011 and January 2012 the total number of people employed and the unemployment rate both fell. Briefly explain how this is possible. [2 marks]
Aggregate demand in the cross model Because C and Im depends positively on Y while G, I and X are exogenous, aggregate demand Y D will depend positively on Y: Y D (Y) = C(
if a 10% decrease in the price of product A brings about a 3% increase in the sales of product B, then a. product A and B are complementary b. the cross elasticity of demand
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