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2. What is the impact propensity? Explain what this means in words. 3. What is the long run multiplier? Explain what this means in words.

2. What is the impact propensity? Explain what this means in words. 3. What is the long run multiplier? Explain what this means in words.

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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Based on  #1, what is the impact propensity and long run multiplier?

 

Assignment 4: Introduction to Time Series. Imagine the following model: gfr = ao + 8ope; + 81pe;-1 + 82pet-2 + Ut 1. You have annual data of the United States from 1990 to 2015. What is your sample size? b. Assume the personal exemption was equal to 1 from 1990 to 1997. If the personal exemption increased by one unit in 1997 and returned to its original level if 2000, what is the following: i. E(gft1995) = ii. E(gft1997) iii. E(gft1998) iv. E(gft1999) = v. E(gft2000) = vi. E(gft2015) = Assume the personal exception was equal to 1from 1990 to 1997. If the personal С. exception increased by one unit in 1997 and remained so until 2015, what is the following: i. E(gft1995) = ii. E(gft1997) = iii. E(gft1998) iv. E(gft1999) = v. E(gft2000) = vi. E(gft2015) = 2. What is the impact propensity? Explain what this means in words. 3. What is the long run multiplier? Explain what this means in words.
Transcribed Image Text:Assignment 4: Introduction to Time Series. Imagine the following model: gfr = ao + 8ope; + 81pe;-1 + 82pet-2 + Ut 1. You have annual data of the United States from 1990 to 2015. What is your sample size? b. Assume the personal exemption was equal to 1 from 1990 to 1997. If the personal exemption increased by one unit in 1997 and returned to its original level if 2000, what is the following: i. E(gft1995) = ii. E(gft1997) iii. E(gft1998) iv. E(gft1999) = v. E(gft2000) = vi. E(gft2015) = Assume the personal exception was equal to 1from 1990 to 1997. If the personal С. exception increased by one unit in 1997 and remained so until 2015, what is the following: i. E(gft1995) = ii. E(gft1997) = iii. E(gft1998) iv. E(gft1999) = v. E(gft2000) = vi. E(gft2015) = 2. What is the impact propensity? Explain what this means in words. 3. What is the long run multiplier? Explain what this means in words.
1. Model: gfr, 3 ap t 8ope, + ӧ,ре,_1 + 8,pe, _2 +u, You have annual data of the United States from 1990 to 2015. – 1 :- 2 a. The sample size is 25 b. E(gft1995) a, + dope1995 + d pe1994 + 8zpe1993 = d,(1) + 8¡(1) + 8,(1) + 8zpe1995 = 8,(2)+ 8¡(1) + 8,(1) E(gft1998) = d, + dope1998 + &¡pe1997 + dzpe1996 = 8,(2) + 8 (2) + 8,(1) E(gft1999) = d, + dqpe1999 + 8¡pe1998 + dzpe1997 = do(2) + d¡(2) + 82(2) i. ii. E(gft1997) = do + dope1997 +dpe1996 iii. iv. E(gft,000) = do + dope2000 + d¡pe1999 + 8zpe1998 = 8,(1) + 8,(2) + 8,(2) V. vi. E(gft2015) = do + dope2015 + 8¡pe2014 + 8zpe2013 = 8,(1)+ 8;(1) + 8,(1) с. E(gft1995) = 1o + dope1995 + d pe1994 + dzpe1993 = do(1) + 8¡(1) + 8,(1) E(gft 1997) i. ii. do + dope1997 + dipe1996 + 8zpe1995 = 8,(2) + 8¡(1)+ 8,(1) E(gft1998) = do + dope1998 + d¡pe197 + 8zpe1996 = d,(2) + 8,(2) + 8,(1) E(gft,999) = do + d„pe1999 + ð¡Pe1998 E(gft2000) = Co + dọpe2000 ii. + dzpe1997 = 8,(2)+ 8;(2) + 8,(2) +özpe1998 = 8,(2) + 8,(2) + 8,(2) E(gft2015) = do + dọpe2015 + d¡pe2014 + 82pe2013 = 8o(1) + 8,(2) + 8,(2) iv. +d¡pe1999 V. vi. 2. The impact propensity is 3. The long run multiplier is
Transcribed Image Text:1. Model: gfr, 3 ap t 8ope, + ӧ,ре,_1 + 8,pe, _2 +u, You have annual data of the United States from 1990 to 2015. – 1 :- 2 a. The sample size is 25 b. E(gft1995) a, + dope1995 + d pe1994 + 8zpe1993 = d,(1) + 8¡(1) + 8,(1) + 8zpe1995 = 8,(2)+ 8¡(1) + 8,(1) E(gft1998) = d, + dope1998 + &¡pe1997 + dzpe1996 = 8,(2) + 8 (2) + 8,(1) E(gft1999) = d, + dqpe1999 + 8¡pe1998 + dzpe1997 = do(2) + d¡(2) + 82(2) i. ii. E(gft1997) = do + dope1997 +dpe1996 iii. iv. E(gft,000) = do + dope2000 + d¡pe1999 + 8zpe1998 = 8,(1) + 8,(2) + 8,(2) V. vi. E(gft2015) = do + dope2015 + 8¡pe2014 + 8zpe2013 = 8,(1)+ 8;(1) + 8,(1) с. E(gft1995) = 1o + dope1995 + d pe1994 + dzpe1993 = do(1) + 8¡(1) + 8,(1) E(gft 1997) i. ii. do + dope1997 + dipe1996 + 8zpe1995 = 8,(2) + 8¡(1)+ 8,(1) E(gft1998) = do + dope1998 + d¡pe197 + 8zpe1996 = d,(2) + 8,(2) + 8,(1) E(gft,999) = do + d„pe1999 + ð¡Pe1998 E(gft2000) = Co + dọpe2000 ii. + dzpe1997 = 8,(2)+ 8;(2) + 8,(2) +özpe1998 = 8,(2) + 8,(2) + 8,(2) E(gft2015) = do + dọpe2015 + d¡pe2014 + 82pe2013 = 8o(1) + 8,(2) + 8,(2) iv. +d¡pe1999 V. vi. 2. The impact propensity is 3. The long run multiplier is
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