Answer in terms of Econometrics

1. A confidence interval for ?? is calculated to be (2, 6). Is the parameter in the interval? Explain.

2. If the results of many regressions are to be reported, how do you do it?

1. What is the effect of a binding minimum wage?

2. There is a supply and a demand curve, with three prices, above at and below equilibrium. If one of those prices is imposed by the government, what happens/

3. Got a supply and demand curve, which areas make up economic surplus?

4. What is marginal utility?

5. What is the utility maximization condition?

Please answer all 5 questions, with example or a scenario that can relate to these questions please and thanks!!

pointer 1 has 2 sections 50% red and 50% yellow.. pointer 2 has 3 sections 50% blue and 25% red and 25% yellow

1. According to the Taylor rule, if there is an expansionary gap of 2 percent of potential output and inflation is 3 percent, what real interest rate will the Fed set?

A) 1.5 percent B) 2 percent C) 3.5 percent D) 2.5 percent

2. The money demand curve will shift to the right if:

A) the price level decreases. B) the price level increases. C) the nominal interest rate increases. D) the nominal interest rate decreases

3. The aggregate demand curve shifts to the right when the Fed:

A) decreases its target inflation rate, reflected by an upward shift in the Fed's policy reaction function. B) increases its target inflation rate, reflected by a downward shift in the Fed's policy reaction function. C) decreases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function. D) increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function.

4. Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.

A) potential output; offset by automatic stabilizers B) consumption; offset by automatic stabilizers C) potential output; not flexible enough D) consumption; too flexible

5. According to the AD-AS diagram, policy makers face a short-term trade-off between ________ when implementing anti-inflation policies.

A) long-term equilibrium and short-term equilibrium B) inflation and unemployment C) inflation and expansion D) recession and stagflation

6. For a fixed inflation rate target, a decrease in the inflation rate corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.

A) shift left of; movement up B) shift left of; shift right of C) movement up; shift right of D) movement down; shift left of

7. In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y – T) – 300r I P = 200 – 400r

G = 200 NX = 10 T = 150

Given the information about the economy above, which expression gives autonomous

expenditures?

A) [790 − 700r ] B) 0.8Y C) [910 − 700r ] D) [760 − 700r ]

8.  In the short-run, if the Federal Reserve decreases interest rates, then consumption and investment

________, planned aggregate expenditure ________, and short-run equilibrium output ________.

A) increase; increases; decreases B) increase; increases; increases

C) increase; decreases; decreases D) decrease; decreases; decreases

1. Prove that (a) ⊆ C(a). Conclude that (a) ≤ C(a)

2. Prove that for each a ∈ G, Z(G) ⊆ C(a). Conclude that Z(G) ≤ C(a).

step by step solution, please

A competitive firm has a production function ?(?, ?) = (? + ?)1/2 where ? and ? stand for inputs capital and labour respectively. The price of capital is ?, and the price of labour is ?. Which of the following is true?

1. Regardless of ? and ?, cost minimisation requires that ? = ?.

2. If ? > ?, contingent demand for labour is 0.

3. The technology has increasing returns to scale.

4. If ? < ?, profit maximisation requires that no labour is used in production.

1. There are identical firms with cost function ?(?) = ? 2 + 100. The market demand is given by the following inverse demand function ? = −0.02? + 220. The industry is a constant cost industry. This is a competitive market where each firm takes the price as given, with $5 per unit tax levied on the producers.

a) Calculate the firm’s MC, AC, AVC and supply ?(?). Graph the cost curves and the supply on a graph.

b) What is the long-run market supply curve? Graph the long-run market supply with the market demand on a graph. Explain how you come to your conclusion.

c) How many firms operate in the long-run? Explain why you will not see a more or smaller number of firms in the long run.

d) What is the short-run market supply if there are 50 firms? What is the profit in the short-run with 50 firms in the market? What is the consumer surplus, producer surplus, and the total welfare in the short run with 50 firms?

g) What is the consumer surplus, producer surplus, and the total welfare in the long-run?