Homework Answers
variables that are controlled for in a model are called as :Endogenous factors.
Definition: These are the variables controlled for a model.
Exogenous factors: these factors are out of control.
Positive statements and normative statements are statements and not variables, hence incorrect options.
Scientific method is anything that has a systematic base.
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Variables that are controlled for in a model are called O endogenous factors. normative statements. O...
Endogenous variables differ from exogenous variables in that exogenous variables are explained The following table lists...
Endogenous variables differ from exogenous variables in that exogenous variables are explained The following table lists the three components of the total demand for goods in a closed economy. Complete the table by classitying each use N to denote endogenous and X for exogenous. the model. Component Class Consumption, C Investment, Government spending, G In the total demand for goods, consumption is assumed to be primarily determined by
Endogenous variables are: (a) fixed at the moment they enter the model. (b) determined within the...
Endogenous variables are: (a) fixed at the moment they enter the model. (b) determined within the model. (c) the outputs of the model. (d) explained by the model. (e) none of the above.
National Income Model - Application of Matrix Algebra Consider the following three-sector national income determination model:...
National Income Model - Application of Matrix Algebra Consider the following three-sector national income determination model: C = 30 + 0.75 (Y − T) T = 10 + 0.3Y I = 250 G = 100 Determine the exogenous and endogenous variables in the system. Solve the model presented in the above system of equations using the determinant and the inverse matrix method to find the equilibrium values of unknown variables. Verify your solution in part (b) above by solving these...
National Income Model - Application of Matrix Algebra Consider the following three-sector nationa...
National Income Model - Application of Matrix Algebra Consider the following three-sector national income determination model: C = 30 + 0.75 (Y − T) T = 10 + 0.3Y I = 250 G = 100 Determine the exogenous and endogenous variables in the system. Solve the model presented in the above system of equations using the determinant and the inverse matrix method to find the equilibrium values of unknown variables. Verify your solution in part (b) above by solving these...
For the following statements identify how you would model the change. What is the exogenous shock?...
For the following statements identify how you would model the change. What is the exogenous shock? How do you model it? Then identify the endogenous changes to price and quantity as the market adjusts to the shock. Due to exceptional weather there is a bountiful cocoa harvest. In the cocoa market, the exogenous shock is a(n) [decrease in demand, increase in demand, decrease in supply, OR increase in supply?] . As a result, one would expect the equilibrium price to...
1. Consider the following regression model with a single endogenous variable, ya : and given the...
1. Consider the following regression model with a single endogenous variable, ya : and given the reduced from for x: where z and are exogenous variables in the sense that cov(u,21) = cov(11,2 ) = 0 and cov(v,21) = cov(ng) = 0 (i.e., both zi and z2 are uncorrelated with u and v, and u is uncorrelated with v) (a) By substituting x into the equation for y, we obtain the reduce formed equation for y: Find the a in...
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y -...
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y - T) = 0 T-y-SY=0 where Y, C, and T are endogenous variables and I., G., a, b, Y, 8 are exogenous and B and 8 are positive fractions. Use Cramer’s Rule to find the effect of a change in G, on Y and C.
Which of the following is a normative economic statement? With falling home prices and rising mortgage...
Which of the following is a normative economic statement? With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. B) The federal government is considering raising the gasoline tax to promote the use of public transportation. c) Fashion designers should be allowed to copyright designs to promote innovation. D) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. Question 15 (10 points) The economic analysis of...
Choose the BEST answer. Normative statements are based upon O conjecture O value judgments. facts
Choose the BEST answer. Normative statements are based upon O conjecture O value judgments. facts
Consider the model, Y; = Bo + B1 Xi+Uj, where you suspect Xi is endogenous. You...
Consider the model, Y; = Bo + B1 Xi+Uj, where you suspect Xi is endogenous. You have an exogenous instrument and you estimate the first stage to recover the residuals, Vhatj. You want to test for endogeneity so you estimate the following model using OLS: Y= Bo + B1 Xi + B2 Vhat; + Uj. The estimation results from 100 observations are in the table: Coefficient Standard Errors Constant 2.63 0.98 X 0.97 0.57 Vhat 0.47 0.10 Please select your...
Endogenous variables differ from exogenous variables in that exogenous variables are explained The following table lists the three components of the total demand for goods in a closed economy. Complete the table by classitying each use N to denote endogenous and X for exogenous. the model. Component Class Consumption, C Investment, Government spending, G In the total demand for goods, consumption is assumed to be primarily determined by
1. Consider the following regression model with a single endogenous variable, ya : and given the reduced from for x: where z and are exogenous variables in the sense that cov(u,21) = cov(11,2 ) = 0 and cov(v,21) = cov(ng) = 0 (i.e., both zi and z2 are uncorrelated with u and v, and u is uncorrelated with v) (a) By substituting x into the equation for y, we obtain the reduce formed equation for y: Find the a in...
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y - T) = 0 T-y-SY=0 where Y, C, and T are endogenous variables and I., G., a, b, Y, 8 are exogenous and B and 8 are positive fractions. Use Cramer’s Rule to find the effect of a change in G, on Y and C.
Which of the following is a normative economic statement? With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. B) The federal government is considering raising the gasoline tax to promote the use of public transportation. c) Fashion designers should be allowed to copyright designs to promote innovation. D) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. Question 15 (10 points) The economic analysis of...
Choose the BEST answer. Normative statements are based upon O conjecture O value judgments. facts
Consider the model, Y; = Bo + B1 Xi+Uj, where you suspect Xi is endogenous. You have an exogenous instrument and you estimate the first stage to recover the residuals, Vhatj. You want to test for endogeneity so you estimate the following model using OLS: Y= Bo + B1 Xi + B2 Vhat; + Uj. The estimation results from 100 observations are in the table: Coefficient Standard Errors Constant 2.63 0.98 X 0.97 0.57 Vhat 0.47 0.10 Please select your...
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