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The Long-Run Cumulative Dynamic Multiplier A XtrX _ { t - r }

Question 25

Short Answer

The long-run cumulative dynamic multiplier a. cannot be calculated since in the long-run, we are all dead.
b. is the sum of all individual dynamic multipliers.
c. is the coefficient on XtrX _ { t - r } in the standard formulation of the distributed lag model.
d. is the difference between the coefficient on Xt1X _ { t - 1 } and XtrX _ { t - r } .

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