Please correct answer and don't use hend raiting ( economic) ( macro economic )The aggregate demand (AD) curve s modelled by the following system of threeequations:y = α-α₁r + α2g+α3(e + p³ − p) + αчyƒ(1)y = ẞo + B₁(m − p) + B₂r(2)r = rf — No — N₁ (e + pf − p) − N₂y + 3y(3)where y is the log of output, r is interest rate, m is the log of money supply, g is the logof government spending, e is the log of exchange rate, p is the log of price level, anda0, a1, a2, A3, A4, Bo, B1, B2, 0, 1, 2 and 3 are positive parameters. The superscript fdenotes a variable of foreign country.a) Explain the economic relationships modeled in equations (1), (2) and (3).

Equation (1) describes how output is influenced by interest rates, government spending, exchange…

Answered: ( economic) ( macro economic ) The…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 12P

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Among the components of personal consumption expenditures (C) the spending of durable goods that last 3 years or more is the greatest in the U.S. households. 1) True 2) False
The following bar chart shows the annual marketing expenditure (in ?) of ABC Electronics. Marketing costs of ABC Electronics (in lakhs of rupees) 20 18 15 12.9 10 9.8 6.7 5 4.4 2007 2008 2009 2010 2011 Variables In the above bar chart, the data of marketing expenditure would be categorised under which of the following types of variable? a) Discrete variable b) Continuous variable c) Dependent variable d) Intervening variable
The following table represents the thallium production and apparent consumption in the United States for the years 2004 through 2010. Unit value is the value in actual dollars of one metric ton (t) of thallium apparent consumption. With 2004 as the base year, adjust the unit value in actual U.S. dollars to the unit value in constant 2004 U.S. dollars (2004$).
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FCI owns 10 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 100 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. The owner of FCI has data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 10 apartments. These data, along with the distance (in miles) from each apartment building to campus, are presented in rows 1 through 11 of Table. The owner regressed the quantity demanded of apartments on price, advertising, and distance. The results of the regression are reported in rows 16 through 35 of Table. What is the estimated demand function for FCI’s rental units? If FCI raised rents at one complex by $100, what would you expect to happen to the…
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