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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.
The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):
Assume an economy that is operating above full employment. A. Draw a correctly labeled AD/AS graph showing: i. the problem in the economy ii. current price level and output iii. fu
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how to get full marks in a drawing of ppc diagrams
distnguish betweenNational income at market price and National Income at factor cost, explain the importance of the distinction
Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located. a. at the top corner of the
Relate central banks with commercial banks In many countries, the central bank imposes reserve requirements. This means that commercial banks are obliged to hold a certain perc
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Quantity Equation-Has this theory worked? Why or why not?
illustrate and discuss the market structures competitiveand non competitive for price determination
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