Question 1 (a) Suppose you were to develop an economic model of criminal activities, say, the hours spent in criminal ac

[answerhappygod]

Question 1 A Suppose You Were To Develop An Economic Model Of Criminal Activities Say The Hours Spent In Criminal Ac 1 (55.35 KiB) Viewed 25 times

Question 1 A Suppose You Were To Develop An Economic Model Of Criminal Activities Say The Hours Spent In Criminal Ac 2 (55.35 KiB) Viewed 25 times

Question 1 (a) Suppose you were to develop an economic model of criminal activities, say, the hours spent in criminal activities (e.g., selling illegal drugs). State five variables would you consider? How will you collect data? (6 marks) (b) The following table gives hypothetical annual monetary aggregate, MI, along with the consumer price Index for each year. Year Monetary aggregate, CPI M1 (in millions of dollars) 2016 348,198 230.77 2017 566,811 216.17 2018 664,523 340.33 2019 893,751 124.18 2020 525,455 248.22 (i) Calculate the real value of the money supply for the years shown. (6 marks) (ii) Find the percent change in tax collections from past year to the current one, for both nominal and real values. What do you notice about the two set of numbers? (6 marks) Year Percent Change Percent Change for Nominal for Real money money supply supply 2016 2017 2018 2019 2020 c) What is the relationship between correlation and regression analysis? (3 marks) (d) What is meant by an error term and state three functions of an error term? (4 marks) [Total: 25 Marks)