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and one interval/ratio level variable Variables can be measured at different levels of precision. Various statistics have been invented to deal with each level of measurement. In order to choose the proper statistics to examine data, we ...
Figure1 shows a typical demand and supply diagram. The price level is on the vertical axis, and real GNP is on the horizontal axis. The demand curve, D, summarizes the demand side of the economy. It slopes downward because a higher price l...
limited liability back into partnerships. This would involve requiring hedge funds to be entirely separated from banks. Economists often have a hard time understanding the reason why both wages and many financial contracts – such as bank lo...
of achievement in, and consequently the elevation of, an economy. It is thus a way of computing the total worth of an economy and consequently its total output. This is principally relevant for computing how an economy is growing (or contra...
stock prices. In particular, Fama and French (1988) and Poterba and Summers (1988) report impressive findings that stock prices are mean-reverting (i.e., contain a slowly decaying temporary component) and induce returns characterised by lar...
linear adjustments are concerned, we considered three different possibilities: that they increase with the size of the deviation (non-proportionality); that they are asymmetric with respect to the sign of the deviation and, finally, that ce...
This paper examines different aspects of the monetary policy that have been used in different countries to develop the economy in positive manner. Over the past decades, developed countries have changed the interest rates and money supply t...