I have already answered #1 a-cBased 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 + Ut1.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 personalexemption increased by one unit in 1997 and returned to its original level if 2000, whatis 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 personalС.exception increased by one unit in 1997 and remained so until 2015, what is thefollowing: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:- 2a. The sample size is 25b.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+dpe1996iii.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¡Pe1998E(gft2000) = Co + dọpe2000ii.+ 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¡pe1999V.vi.2. The impact propensity is3. The long run multiplier is

Question

I have already answered #1 a-cBased 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 + Ut1.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 personalexemption increased by one unit in 1997 and returned to its original level if 2000, whatis 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 personalС.exception increased by one unit in 1997 and remained so until 2015, what is thefollowing: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:- 2a. The sample size is 25b.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+dpe1996iii.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¡Pe1998E(gft2000) = Co + dọpe2000ii.+ 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¡pe1999V.vi.2. The impact propensity is3. The long run multiplier is

Accepted Answer

Answer is in step 2.

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.