Question: Calculate the long-run static equilibrium solution to the following dynamic econometric model yt = 1 + 2x2t + 3x3t + 4 yt1 + 5x2t1 +6x3t1

Calculate the long-run static equilibrium solution to the following dynamic econometric model

yt = β1 + β2x2t + β3x3t + β4 yt−1 + β5x2t−1

+β6x3t−1 + β7x3t−4 + ut AppendixLO1

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