You Have Collected Quarterly Canadian Data on the Unemployment and the Inflation

question 38

Essay

You have collected quarterly Canadian data on the unemployment and the inflation rate from 1962:I to 2001:IV. You want to re-estimate the $\operatorname { ADL } ( 3,1 )$ formulation of the Phillips curve using a $\mathrm { GARCH } ( 1,1 )$ specification. The results are as follows:
$$\begin{aligned}\widehat { \Delta \operatorname { Inf } f _ { t } } = & 1.17 - .56 \Delta \operatorname { Inf } f _ { t - 1 } - .47 \Delta \operatorname { Inf } f _ { t - 2 } - .31 \Delta \operatorname { Inf } _ { t - 3 } - .13 \text { Unemp } _ { t - 1 } \\& ( .48 ) ( .08 )\quad\quad\quad\quad \quad(.10)\quad\quad\quad\quad\quad(.09)\quad\quad\quad\quad(.06)\\\hat { \sigma } _ { t } ^ { 2 } = & .86 + .27 u _ { t - 1 } ^ { 2 } + .53 \sigma _ { t - 1 } ^ { 2 } . \\& ( .40 ) ( .11 )\quad\quad(.15)\end{aligned}$$ (a) Test the two coefficients for $u _ { t - 1 } ^ { 2 }$ and $\sigma _ { t - 1 } ^ { 2 }$ in the GARCH model individually for statistical significance.

Understand the Hardy-Weinberg equilibrium and its importance in predicting the genetic structure of populations under certain conditions.

Understand the basic principles and mechanisms of evolution.

Describe how genetic variation within populations contributes to evolution.

Explain the impact of genetic drift, gene flow, and nonrandom mating on population genetics.

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