Consider the ADL model Y₁ X, is strictly exogenous. - = 3.1 + 0.4Y₁-1 + 2.0X, 0.8X₁-1 + ₁, where a. Derive the impact effect of X on Y. b. Derive the first five dynamic multipliers. c. Derive the first five cumulative multipliers. d. Derive the long-run cumulative dynamic multiplier. Show that Explain.
Consider the ADL model Y₁ X, is strictly exogenous. - = 3.1 + 0.4Y₁-1 + 2.0X, 0.8X₁-1 + ₁, where a. Derive the impact effect of X on Y. b. Derive the first five dynamic multipliers. c. Derive the first five cumulative multipliers. d. Derive the long-run cumulative dynamic multiplier. Show that Explain.
Chapter1: Making Economics Decisions
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![16.10 Consider the ADL model Y, = 3.1 + 0.4Y,_, + 2.0X, – 0.8X,-1 + ũ,, where
no bauol
Bto X, is strictly exogenous.
MeU oln onf
t-1
nce of the
a. Derive the impact effect of X on Y.
b. Derive the first five dynamic multipliers.
bns une
fame Sc. Derive the first five cumulative multipliers.
Show that
Esplain
a0 g d. Derive the long-run cumulative dynamic multiplier.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b59660e-423c-4787-8fa8-6aaff06e2132%2F98dd48f1-d142-4dc8-9988-6183f9763345%2Fuispa1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:16.10 Consider the ADL model Y, = 3.1 + 0.4Y,_, + 2.0X, – 0.8X,-1 + ũ,, where
no bauol
Bto X, is strictly exogenous.
MeU oln onf
t-1
nce of the
a. Derive the impact effect of X on Y.
b. Derive the first five dynamic multipliers.
bns une
fame Sc. Derive the first five cumulative multipliers.
Show that
Esplain
a0 g d. Derive the long-run cumulative dynamic multiplier.
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