MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
10th Edition
ISBN: 9781319467203
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 14, Problem 6PA
(a)
To determine
The impact over economy with anticipated and unanticipated changes in money supply.
(b)
To determine
The impact of policy irrelevance proposition.
(c)
To determine
The impact of
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You are the manager of a large automobile dealership who wants to learn more about the effective-
ness of various discounts offered to customers over the past 14 months. Following are the average
negotiated prices for each month and the quantities sold of a basic model (adjusted for various
options) over this period of time.
1. Graph this information on a scatter plot. Estimate the demand equation. What do the
regression results indicate about the desirability of discounting the price? Explain.
Month
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Quantity
Jan.
12,500
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Feb.
12,200
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Mar.
11,900
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Apr.
12,000
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May
11,800
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June
12,500
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July
11,700
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Aug.
12,100
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Sept.
11,400
22
Oct.
11,400
25
Nov.
11,200
24
Dec.
11,000
30
Jan.
10,800
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Feb.
10,000
28
2. What other factors besides price might be included in this equation? Do you foresee any
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simple steps on how it should look like on excel
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Chapter 14 Solutions
MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
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