The AR(p) model
A) is defined as Yt = ?0 + ?pYt-p + ut.
B) represents Yt as a linear function of p of its lagged values.
C) can be represented as follows: Yt = ?0 + ?1Xt + ?pYt-p + ut.
D) can be written as Yt = ?0 + ?1Yt-1 + ut-p.
Ans: B) represents Yt as a linear function of p of its lagged values.
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Everything else equal, if the dollar appreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will export more to the U.S. and will import less from the U.S. C) the Chinese government will sell yuan in the foreign exchange market. D) China will import more from the U.S. and will export less to the U.S.
The above table gives information for the nation of East Hampton
a. Find aggregate planned expenditure for each level of real GDP. b. What is the MPC? c. What is the equilibrium level of real GDP?