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- please answer the following questions based on marcroeconomicExplain why it is important for an economic modelto be an abstraction from the real world.Explain the difference(s) between an economic and an econometric model . Write down examples for each model by using the variables that is decided for your project .
- What is okun's law ?what is marcoeconomic?Let wtpi denote the willingness of person i from a population to pay for a new public project, such as a new park or the widening of an existing highway. You are interested in the e¤ects of various socioeconomic variables on wtp, and you specify the population model Rather than observe wtpi, each person in the sample is presented with a cost of the project, ri. At this cost the person either favors or does not favor the project. Let yi = 1 if person i favors the project and zero otherwise.
- 1. Expain in detail a) What are Computable General Equilibria Models? b) Can a country enacting a tariff have a portion of that tariff paid by foreign producers? If yes, why & show it by using an appropriate diagram.Using sound economic theory, develop a macroeconomic econometric model that would test the relationshipbetween globalisation and economic development in South Africa. You are to state the a priori expectations ofwhat the model would tell us, and you are to write the model using ‘Word Equation’. Finally, each variable that isincluded must be justified regarding its relevance for being there.3. Write the theoretical model speciation of a logit model?
