Refer to Figure 15-15. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________

When Xt is strictly exogenous, the following estimator(s) of dynamic causal effects are available:

A) estimating an ADL model and calculating the dynamic multipliers from the estimated ADL coefficients B) using GLS to estimate the coefficients of the distributed lag model C) neither (a) or (b) D) (a) and (b)

Suppose an the government has a current tax rate of c. Knowing the Laffer Curve is depicted below advise the president on whether the tax rate should be increased, decreased, or remain the same.