Question: 16.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt - 1 + u t, where Xt is

16.10 Consider the ADL model Yt = 5.3 + 0.2Yt - 1 + 1.5Xt - 0.1Xt - 1 + u  t, where Xt is strictly exogenous.

a. Derive the impact effect of X on Y.

b. Derive the first five dynamic multipliers.

c. Derive the first five cumulative multipliers.

d. Derive the long-run cumulative dynamic multiplier.

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