Q2: Solve the national-income model by matrix Inversion: ? = ? + ?0 + G … … … … … … … … … … . . … . (1) ? = ? + ?(? − ?), (? > 0,0 < ? < 1) … … (2) ? = ??, 0 < ? < 1 … … … … … … … . … . (3)
Q: Question 3: National Income Determination Model Consider the…
A: exogenous variable are those variable which are not in your control (or not explained by the model)…
Q: a) how many degrees of freedom are there in this equation b) differentiate the Equation c) Put dM…
A: The macroeconomic model of IS-LM establishes a relation between the interest (r) rate and the…
Q: For the specific national income model given Y= C + I, + G, C=60 + 0.9(Y-T) T=30+0.2Y…
A: C=60 + 0.9(Y-T) T=30+0.2Y I, =31 and G, = 20
Q: Is the relationship between total fertility rate and the rate of enrollment of girls in secondary…
A: Yes, the overall fertility rate and the rate of female secondary school enrolment are linked.
Q: QUESTION 10 A recession is a period during which aggregate output increases. True False
A: A recession refers to a period in which there is a consistent reduction in the aggregate output (Y)…
Q: Explain how the percentage of undernourished people can have decreased slightly between 2000–2002…
A: This can be explained by the population growth. Suppose P is the population and U is the absolute…
Q: Suppose that there are two types of sports drink on the market, PowerPal and CrocoAde. In October,…
A: CrocoAde PowerPal 43% 57% 32% 68% 74% 26%
Q: what is the true significance measured by foreign market share in US real estate
A: Out of the total consumption of the goods or service, what percentage goes to the firms of a country…
Q: Despite known problems in the method of calculating the unemployment rate, the approach is rarely…
A: Unemployed persons are those who are unemployed and actively seeking work. Unemployment is commonly…
Q: A population pyramid is almost symmetrical and looks like a pyramid because: A. the age structure…
A: The population pyramid refers to the representation of the population into two groups based in their…
Q: Real Business Cycle models, or RBCs, assume there is one perfectly rational household that…
A: Different economic models have their specific assumption that makes the model relevant for a…
Q: A researcher fitted following OLS regression using time series data from 1973 t0 2020 (Bar)BD =-3.7…
A: The budget deficit as a percentage of GDP depends on exchange rate, government expenditures,…
Q: Explain what is meant by serial correlation and discuss its underlying causes.
A: Serial correlation is a statistical term that describes the relationship between observations of the…
Q: Consider the following three-sector national income determination model assuming equilibrium in the…
A:
Q: Give a description of the Fama-French three factor model, and the equation of the model.
A: Fama and French three-factor model is an asset pricing model which will be adding risk size and…
Q: Do you remember the Harrod-Domar model? Derive it and apply it to a numerical case where d=4%,…
A: d = 4% s = 35% gy = 8% S is expected to rise by 45% next year
Q: In the IS/LM model, the exogenous variables include government spending, income and interest…
A: Exogenous variables are those variables whose values are given to find the value of endogenous…
Q: Read the analyst's analysis (see below) of the relationship between the minimum wage and employment…
A: In minimum wage law there is a minimum wage that needs to be paid to the labors, it is generally…
Q: The per capita income of a country t years from now is defined to be I(t) P(t) C(t) where I(t) and…
A: Since it has not been specified which questions are to be answered, we will answer the first…
Q: E. Is unemployment rate a determinant of the murder rate in this data? Answer "YES" or…
A: Answer - Given in the question-
Q: 1. Suppose you have the following national income model: Y -C = G. -0.45Y+ C = 102 -0.45 T -0.4 Y +…
A:
Q: Let the national income model be; Y = C + I0 + G , C = a + b ( Y – T) , G = g Y…
A: National income model determines the level of production or income generated in the economy in terms…
Q: Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y…
A: Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y Where Go = 187 Y = C + I + G0or Y = C + I + 187or…
Q: Suppose you have quarterly data on new housing starts, interest rates, and real per capita…
A: Housing starts implies new construction projects of residential complexes. It implies a leading…
Q: QUESTION 10 Suppose that the capital stock depreciates. Which picture best represents the change in…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A prescriptive model of the BGS relationship would be one that tells us how that relationship does…
A: Business-wide term incorporating a reach of actions and foundations. Government - alludes to designs…
Q: what is it that the three income hypothesis have in common, does it address the the deficiency in…
A: An individual's consumption behaviors and income are related to one another according to a…
Q: Although the virus has delayed the budget until October .... last week the secretary to the Treasury…
A: According to the article above, 900,000 people lost their jobs during the period (although…
Q: 3- Given the way the MPI is designed, there are some aspects that may not be captured. For instance,…
A: True the Master Patient Index (MPI) is one of the tools that discusses about the broad function and…
Q: Problem 2: Consider the following National Income determination model: Y=C+I0+G0 C=500+0.75(Y−T)…
A: The calculation of a nation's wellbeing is done using many methods including the method of…
Q: Consider the following data on the X-product: a)What was the growth rate of real GDP between 2010…
A: Growth rate of nominal GDP between 2010 and 2011 = [[Nominal GDP in 2011 - Nominal GDP in 2010] /…
Q: Consider the following national income model : Y = C + I + Go C = 102 + 0.6Y 3.3000000000000003I…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: The world's population living in extreme poverty has declined linearly between the years 2005 and…
A: The general linear equation, y = mx +b The linear equation that models the world’s population in…
Q: How does it reconcile cross-sectional data with that from time series macroeconomic data
A: Milton Friedman demonstrates that the total cost of admission is indistinguishable from never-ending…
Q: the basic data source to track the number of unemployed comes from a calculation of applications for…
A: The basic data source to track the number of unemployed in the US economy is the Current Population…
Q: National income accounting can best be characterized as: Group of answer choices a microeconomic…
A: The government bookkeeping system that analyses the health of an economy, expected growth, business…
Q: IF A2 2. What happens to domestic income in the AS–AD model when the price of a critical, imported,…
A: In this, demand for the inputs is critical as input is used actively in the domestic production and…
Q: 1] kindly tell the difference between log -linear , linear - log ,log -log and linear - linear…
A: We are going to analyze differences among the various forms of regression models.
Q: In which ways the product-cycle model inconsistent with the Heckscher-Ohlin model? In which ways are…
A: Answer: A product life cycle is the period of time between when a product is first introduced to…
Q: Define simultaneous causality bias. Explain the potential for simultaneouscausality in a study of…
A: Simultaneous bias is a threat to internal validity in a causal analysis. It occurs when the…
Q: MULTIPLE CHOICE Let yt = 12.50 be the natural logarithm of Real GDP in year t. Suppose that gt =…
A: The discrepancy between the real and permanent components of GDP is known as the cyclical component.…
Q: There are a number of measures of aggregate economic activity, such as GDP, GNP, national income,…
A: a) Disposable income refers to the gross personal income which is the income after deduction of…
Q2: Solve the national-income model by matrix Inversion:
? = ? + ?0 + G … … … … … … … … … … . . … . (1)
? = ? + ?(? − ?), (? > 0,0 < ? < 1) … … (2)
? = ??, 0 < ? < 1 … … … … … … … . … . (3)
Step by step
Solved in 3 steps
- 3) You want to study the effects of disposable income, anti-smoking advertising and cigarette prices on the per capita consumption of cigarettes in US. You collect data on these variables across the 51 states over 20 years. You thus have 51x20=1,020 data points. For each state and year, you measure: Y=per capita consumption of cigarette (the fraction of the state population that smoked in that year); Xı=per capital income in the state (in US$); Xx=total expenditure in anti-smoking advertising in that state (in USS); and X3=average cigarette price in the state (in US$). You can then run a model: Y= Bo+Bi*X++ B2*X+ B3*X3+e Explain how you would test that the model is useful in predicting Y: How you would test the alternative hypothesis that you have at least one of the coefficients B1, ß2 or ß3 is different from zero. (That is, the null is that all three coefficients are zero.) Use a significance level a=0.05. (Again, there is no need to “run" the data. Just explain what you would do.…2. (40 points) In their 1999 Applied Economics Letters paper, Zakir and Wunnava proposed the following specification in identifying the factors affecting infant mortality rates (IMR): IMR₁ = B₁+ B₁FERTILITY, + ß₂LNGNP; +߸LABOUR; + ßLABOUR² + B₂LITERACY, + BHEALTH; +ε₁ Where i=1,2,..., 117 (i.e., based on a cross-section of 117 countries) IMR = infant mortality rate-number of deaths before age 1 per 1000 live births FERTILITY = number of births per woman LNGNP = the natural logarithm of per capita GNP (note that GNP is measured in '000 of $s) LABOUR = percentage of women in the labor force LITERACY = female literacy rate HEALTH = expenditure on health care as percentage of GNP Following are their estimated regression results along with sample means (based on a cross-section of industrialized and third world countries for 1993). Mean of IMR: 44.983 Variable name Estimated t-ratio Mean coefficient FERTILITY 10.812 7.848 3.5556 LNGNP -6.998 -3.134 8.2585 LABOUR 4.135 3.359 40.051 LABOUR²…Look over the following equations and decide whether they are linear in the variables, linear in the coefficients, both, or neither: a. Y; = Bo + BiX+ Ei b. Y = Bo + B,InX,+ €i c. InY = Bo + B,InX;+ E d. Y; = Bo + BiX+ E e. Y = B1 + BX+ E
- The equation S = I + NCO describes the savings market for an entire national economy engaged in foreign trade. Between the variables I and NCO, which represents the amount of national savings utilized in the domestic economy and in foreign markets? How do you know?Determine the share (proportion) of person trips by each of two modes (Private auto and mass transit) using the multinomial logit model and given and following informationConsider the following three-sector national income determination model assuming equilibrium inthe economy: C = 20 + 0:85 (Y ? T)T = 25 + 0:25YI = 155G = 100 1. Determine the exogenous and endogenous variables in the system. 2. Solve the model presented in the above system of equations using the matrix inverse and the Crammer's rule for the equilibrium values of the unknown variables. 3. Verify your solution in part (2) above by solving these simultaneous equations.
- A researcher is investigating the impact of a firm's capital intensity on its labour productivity using data for the year 2014 for a sample of manufacturing firms from Germany, France, Sweden, Italy and the UK. She has estimated the following model: LP 190 +0.3 × CAPIN - 31.8 × FR + 65.4 × SE + 15.8 × UK - 25.1 × IT where: LP is the firm's labour productivity (measured as turnover per employee, in €000s per employee); CAPIN is the firm's capital intensity (measured as total assets per employee, in €000s per employee); FR is a dummy variable that takes the value 1 if the firm is French and 0 otherwise; SE is a dummy variable that takes the value 1 if the firm is Swedish and 0 otherwise; UK is a dummy variable that takes the value 1 if the firm is British and 0 otherwise; IT is a dummy variable that takes the value 1 if the firm is Italian and 0 otherwise. Enter in the box below the predicted value of labour productivity for a British firm with a capital intensity of € 250 000…Use the chain rule to find dy/dx for th following : y= (7x^2-5)^9E EX 4 . Suppose revenue from the sale of new homes in a certain country decreased dramatically from 2005 to 2010 as shown in the model r(t) = 413e-0.326t billion dollars per year (0 sts 5), where t is the year since 2005. If this trend were to have continued into the indefinite future, estimate the total revenue from the sale of new homes in the country from 2005 on. HINT [See Example 1.] (Round your answer to the nearest biltion dollars.) !!
- Consider data on every game played by the Brooklyn Nets in 2014 (82 games) that includes the variables ● marginį - the Net's margin of victory (number of points the Nets scored minus the number of points their opponent scored) for game i, and home; - a dummy variable equal to 1 when the Nets are the home team (game i was played in their home arena) and equal to O when they are the away team (game i was played in the opponent's arena). I use the least-squares method to estimate the following regression model margin, = a + ßhome; + ei Below is the Stata output corresponding to the estimated regression line: . regress margin home if team ==== "Brooklyn Nets". Source Model Residual Total margin home __cons SS 1459.95122 15252.0488 16712 df 1 80 Coef. Std. Err. MS 81 206.320988 8.439024 3.049595 -5.219512 2.156389 1459.95122 190.65061 t Number of obs F(1, 80) Prob > F R-squared P>|t| 2.77 0.007 -2.42 0.018 = Adj R-squared = Root MSE = 2.370137 -9.510864 = 82 7.66 0.0070 0.0874 0.0760 13.808…EXERCISE 3.5 1. Given the following model: Y = C÷lo+Go C = a + b(YT) (a> 0, T = d+tY (d>0, 0 0, 0Q3] 100.00% 80.00% 60.00% 40.00% C 20.00% B 0.00% 0% 20% 40% 60% 80% 100% Percent of households Use the above plot to fill in the blanks. represent that the bottom b. Point C represent that the bottom a. Point % of households earn less than 20% of all income. % of households earn than than_% of all income. % of all income. Point represent that the top 10% of households earn C. Percent of incomeSEE MORE QUESTIONS