Behavior of entire economies
Macroeconomics focuses on the behavior of entire economies, using aggregate measures such as the overall price level, unemployment rate, and economy-wide output.
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Describing a time you tested a theory
You are given the following data on call and put premia in cents per share for company ABC's shares, currently priced at 425 cents each. Each contract refers to 1000 shares.
The mean is 34.51 for men with a standard deviation of 3.48 and a mean of 29.44 with a standard deviation of 2.86. Conduct a two tailed hypothesis test at a significance level of .05 to see if the two means are different.
Suppose a Production Possibilities frontier includes the following combinations:What is the cost of producing an additional car when 50 cars are being produced? What is the cost of producing an additional car when 150 cars are begin produced?
Now suppose the economist allow for crowding out. Would their new estimate of MPC be larger or smaller than their initial one?
Wealth is redistributed from creditors to debtors when inflation was expected to be:
Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income:
Determine (solve for) the equilibrium level of income or GDP (Y). Determine the impact on income of a 50 increase in government spending from 250 to 300. Using the original data, compute the impact of a 50 decrease in taxes from 125 to 75.
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