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What does “least squares” estimates mean? What is being estimated? What is being squared? In what sense are the squares “least”?

Posted on February 13, 2023 by Shady

TASK Consider the following two least-squares estimates of the relationship between interest rates and the federal budget deficit in the United States: Model 1: N = 56, R2 = 0.00 where: = Interest rate on AAA corporate bonds = Federal budget deficit as percentage of GNP Model 2: .369 […]

Calculate the rate of inflation for 2020 and 2021 using the GDP deflator as your price index. Assume that 2019 is still the base year.

Posted on February 11, 2023 by Shady

TASK 1.Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2019, 2020, and 2021. a.Calculate nominal GDP in each of the three years. b.Calculate Real GDP in each of the three years, using 2019 as the base year. c.Calculate the rate of inflation for 2020 […]

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