Suppose the following model describes changes in the civilian unemployment rate: Δuert = −0.0405 − 0.4674Δuert −1. The current change (first difference) in the un- employment rate is 0.0300. assume that the mean-reverting level for changes in the unemployment rate is −0.0276. a. what is the best prediction of the next change? b. what is the prediction of the change following the next change? C. explain your answer to Part b in terms of equilibrium.
Suppose the following model describes changes in the civilian unemployment rate: Δuert = −0.0405 − 0.4674Δuert −1. The current change (first difference) in the un- employment rate is 0.0300. assume that the mean-reverting level for changes in the unemployment rate is −0.0276. a. what is the best prediction of the next change? b. what is the prediction of the change following the next change? C. explain your answer to Part b in terms of equilibrium.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose the following model describes changes in the civilian unemployment rate: Δuert = −0.0405 − 0.4674Δuert −1. The current change (first difference) in the un- employment rate is 0.0300. assume that the mean-reverting level for changes in the unemployment rate is −0.0276. a. what is the best prediction of the next change? b. what is the prediction of the change following the next change? C. explain your answer to Part b in terms of equilibrium.
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