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1. What are the two roles that prices play in a competitive economy? How are these two roles related to the Fundamental Theorems of Welfare Economics? 2. The Undercover Economis
volatility
Problem 1. Consider the demand function Q(p 1 , p 2 , y) = p 1 -2 p 2 y 3 , where Q is the demand for good 1, p 1 is the price of good 1, p 2 is the price of good 2 and y is t
Peter's utility function is u(x, y) = x + 2y where x is the number of ounces of coffee and y is the quantity of sugar in grams. Let unit prices be given by P x = 6 cents, P
Problem 1: a. Explain the meaning of regression and its usefulness. b. Distinguish between GARCH (1, 1) and asymmetric GARCH. c. Clearly explain the two tests used for
why do we make use of regression analysis in our econometrics analysis
t-ratio under multicolinarity
Problem 1: (a) Using examples explain the concept of cointegration. (b) Explain the term ‘stationarity' and its importance. (c) Differentiate between stochastic and determinist
How can a person achieve his goal for development?Explain it with 5 examples.
Problem: a) Using a financial or economics theory, determine a simultaneous structural model and a recursive model, explaining each variable used in the models. b) Using
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