EC355 Midterm: midterm sample.pdf
Document Summary
Inft = + 1*inft-1 + 2*(gdpt gdpt*) + ut. To forecast the canadian inflation rate, a research proposes the following model where inft = inflation rate for quarter t. Gdpt = gross domestic product at quarter t. State whether the following statements are true or false. Explain. (c) interpret the coefficients on ceoten and comten. There are at least two different possible approaches to the problem of building a model of the costs of production of electric power. Model i hypothesizes that per-unit costs (c) as a function of the number of. I: kilowatt-hours produced (q) continually and smoothly falls as production is increased, but it falls at a decreasing rate. Model ii hypothesizes that per-unit costs (c) decrease fairly steadily as. Ii: production (q) increases, but costs decrease at a much faster rate for hydroelectric plants than for other kinds of facilities.
