Answer:
Explanation:
A. Solving for P yields P =0011dsiiuuγβββ−−+; thus 21(,)susCov P uσβ−=.Because Cov(P,u) ≠0, the OLS estimator is inconsistent.
B. We need an instrumental variable, something that is correlated with P but uncorrelated with us. In this case Q can serve as the instrument, because demand is completely inelastic (so that Q is not affected by shifts in supply). γ0can be estimated by OLS (equivalently as the sample mean of Qi
Answer: Option A
Explanation: Determine priorities and set realistic goals
Prices are increasing.
'Prices' are generally a measure of a bundle of goods and services that consumers purchase on a regular basis.
In the long run, most economists agree that a permanent increase in government spending leads to <u>complete</u>.
Fiscal policy refers to the use of government spending and revenue collection (taxes or tax cuts) to affect a nation's economy. The 1930s Great Depression made the prior laissez-faire approach to economic management impractical, which led to the development of the use of government revenue expenditures to affect macroeconomic variables.
The British economist John Maynard Keynes' Keynesian economics, which postulated that changes in the amount of government spending and taxation have an impact on aggregate demand and the level of economic activity, serve as the foundation for fiscal policy.
A nation's government and central bank primarily employ fiscal and monetary policy to further its economic goals. These authorities can target inflation thanks to the combination of these strategies.
To learn more about Fiscal Policy here
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Answer:b
Explanation:
if you show that other companies profit from what you sell people would want to by the product
E.6.C
