Q1. Illustrate what is a random walk? Explain how is Hall's random-walk model of consumption related to the life-cycle (LCH) and permanent income hypotheses (PIH)?
Q2. To increase a company's performance, a manager suggests which the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect.
Q3. A. Illustrate what is Tobin's q, and illustrate what does it have to do with investment? Explain how Tobin's q is can be related to the neoclassical model of business fixed investment?
B. Assume a loss in the export sales reduces GDP which causes a recession. Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.