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0.6 0.1 0.1 -0.2 1.05 0.05 Y 2.1- 1 + 821 1 21 = -0.2 0.05 1.05 y 3, 1 -1 8 31 with O

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0.6 0.1 0.1 -0.2 1.05 0.05 Y 2.1- 1 + 821 1 21 = -0.2 0.05 1.05 y 3, 1 -1 8 31 with O 12 513 &It iid 012 23 013 0 23 53 & What is the expected effect of a period t shock to Ez of size y > 0 on y3,th , for h = 1, 2, 3 and as h - co? Show all your algebraic work. (You may use software of your choice to calculate any eigenvalues, eigenvectors and/or other matrix transformations you use in your solution. Provide program files and/or screen shots for any such software-based work.)

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