Briefly explain Harrod-Domar model. What are the shortcomings of the model? Discuss.

Q: Explain in detail what are Computable General Equilibria Models?

A: Computable General Equilibria (CGE) models are large economic models that are used to estimate the…

Q: Explain the assumptions of the Harberger model

A: Harberger Model is a two sector model where separate goods are produced by both corporate and non…

Q: Write down the function optimized and list the objects chosen during the optimization.

A: Given model - yi=β0 + β1Xi + β2Zi + u  OLS is a type of linear square method for estimating the…

Q: Consider the following numerical example of the IS-LM model: C= 100 + 0.3Yd ; I = 150 + 0.2Y – 1000…

A: IS-LM model is widely used to denote the simultaneous equilibrium in product and money markets.…

Q: Y₁ = A[K² + N²]¹/² Production function: K₁₁ = (18)K + 1₂ Capital evolution: t+1 I = SY₂ t…

A:

Q: What are the assumptions of say's law

A: Say's Law states that supply creates its own demand.

Q: Explain Z-D model with the help of diagrams

A: The Z-D model was given by Keynes in the early 1930’s.

Q: List the 5 assumptions of the Classical Linear Regression Model and explain at least three of them

A: Linear regression model- Linear regression attempts to model the relation between two variables by…

Q: 2. One topic from this module is heteroskedasticity. A. Convince me that you know what…

A: In regression analysisregression analysis, one of the key suppositions is homoskedasticity, which…

Q: Carefully examine and discuss the major differences of the Mundell Fleming Model in the short run as…

A: This economic model was first proposed (independently) by Robert Mundell and Marcus Fleming and is…

Q: Government Figure 9.1 Private Insurance THI PHI Reimbursement Citizens Donations Healthcare…

A: Health care: It refers to the activities under which hospitals, medical care facility, medical…

Q: A homogenous product is produced by two rival firms. They have the same costs. The market demand is:…

A: a. P= 80-Q1-Q2 C1= 50Q1 C2=50Q2 MC1= MC2=50 TR1= PQ1        = (80 -Q1 - Q2)Q1       = 80Q1 - Q12 -…

Q: Question 3 a) Sara and Alfred estimated the following model: EDt =B₁ + B₂GDPt - B3EPt + ut (1) where…

A: Given information EDt=β1+β2GDPt-β3EPt+μt--- First regression…

Q: What are the limitations of Samuelson general equilibrium model

A: Introduction A mathematical formalism of constrained maximization or minimization of an optimal…

Q: A homogenous product is produced by n rival firms. They have the same costs. The market demand is: P…

A: P = 80-Q TCi = 50qi

Q: Consider the following model of house prices: lhprice=β0+β1bdrms+β2llotsize+β3lsqrft+u The…

A: Precision of the partial slope coefficient means that the variance of the estimate of partial…

Q: Name and explain two fundamental assumptions underlying the Cournot model.

A: We are going to understand the basic assumptions behind the Cournot model to answer this question.

Q: Can we compare the linear-log model and the log-log model? Which of the log regression models best…

A: The log-log model and linear-log model differs only in the functional form of dependent variables.…

Q: explain what is post heckscher-ohlin model?

A: The Heckscher-Ohlin model suggests that countries export what they are best at producing in…

Q: Interpret this graph according to the theory of hecksher-ohlin model.

A: Hecksher-Ohlin: It expands on David Ricardo's hypothesis of near favorable position by foreseeing…

Q: How Regression models are used for Forecasting purpose?

A: Regression model helps to estimate the relationship between the dependent variable and one or more…

Q: What are the commonalities and differences between regression and correlation

A: Variable: A variable is a characteristic of an observed item that can take multiple values.  ​From a…

Q: Given that E = C +I , derive a function for Y in terms of t for each of the following macroeconomic…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: 04 MR MR

A: The marginal revenue curve is a downward sloping curve and the marginal revenue is the additional…

Q: See Figure 2.2 and examine the model.  Unlike other circular flow models, this model is missing…

A: The circular flow model of an economy represent major exchanges as flow of money, goods and services…

Q: 6. Next, show that as long as the model is correctly specified (assume it reflects the true data…

A:

Q: What are the various functional forms of Regression Model?

A: There are four functional forms of regression Model.

Q: Why researchers use so many theoretical model to do their research, such as regression model,…

A: In economics, researchers are considered as the people who uses empirical evidences, past…

Q: a) Consider the following equations of an open economy Y=C+I+G+X-M C = 100 + 0.75(Yd)yd = Y – T I =…

A: Below is the given values: Y=C+I+G+X-MC=100+0.75YdYd=Y-TI=100-125YM=100 + 0.25(Y)