Please solve the following. Answer all the questions

Consider the linear model Yi=beta0+betal *Xitei, i=1,...,n, where el are assumed to be i.i.d. N(0,of). For the LS estimates bo and bl of betaO and betal, show that a) E(bO)=beta0 djAlso show that cov(Y,bl)=0, that is, > (the sample mean of Y) and bl are correlated.According to the professor, a simple regression model of the form Y-hat = bQ + bix has two parameters, bo and bl. Which of the following statements is true ? None of the answers on this list is true. bo tells us how much the answer changes with a unit increase of XO and bl tells us what the value of Y will be if X0 equals O. 60 estimates where the regression line intersects the vertical axis, and b1 estimates the slope of the line. 60 estimates the slope of the line, and bi estimates where the regression line intersects the vertical axis. bo and bl are both slope parameters.Recall the government's intertemporal budget constraint: ( 1 + r) b+ 1 = En=0 ( 1tijn + > 100 stan where r is the real interest rate by_1 is the debt outstanding at the end of date t - 1, Sty is the primary budget surplus in date t + n, and s is seigniorage in date t + n Suppose that the government enters period t with debt by_1 = 500 and that the real interest rate is r = 0.05. Q5.1 1 Point Suppose that the government commits to the following: .. Maintaining a constant primary fiscal surplus s in the current and all future periods (i.e. st = $/ - 1 = $ 1 2 =... = $. Earning no seigniorage revenue in the current and all future periods (ies, = $ 1Consider the model Y = ?0 + ?1X + ?20 + ?, where X is a quantitative variable and D is a dummy variable. For D = 1, the predicted value of Y is computed as a. y-hat = b0 + b1X + b2X b. y-hat = b0 + bix c. y-hat= (b0 + b1)x + b2 d. y-hat = (60 + b2) + bixQ2 Equilibrium in the consumption-labor choice model 4 Points Recall that equilibrium in the static consumption-labor choice model is given by the following five equations: Y = AKLl-a p = (1 - Q)ARL-a 1= 14 1 -4 (WP) K] Y = C Suppose a = 0.35, A = 1. K - 2, 000. 000 and /V = 1: 000, 000 Answer the following Q2.1 i Point in the US average worked allocates about Blue of Soo ne: D N . 1/3 Use thisguyConsider the simple linear regression model Y = BO + BIX + e of a family's incoame Y, with X being the average education of the adults in the household. (a) What signs would you expect for the parameter BOand B1 ? Explain. (b)if 80=510,000 and 81 =$3,000, what is the expected value E[Y|X] for a person with a high school degree(X=12)? (c)Let BO =510,000, 81 =53,000, and o