1. In a system of equations given below, Y's are endogenous while X's are exogenous. Which of the following statement is TRUE? Y = d tay tay, +a X, + as X2 + 1, Yz = +AY, + PX1+ 12 (a) The first equation is just identified (b) The second equation is not identified (c) None of the equation can be identified (d) The third equation is over identified 2. In the following VAR model, which of the following null hypothesis signifies the correct statement for the Granger causality test of y2 does not Granger cause y1? Y2r = 20 + Pzyis + Bzzyz- + 72131-2 + 722 3/21-2 + 621311-3 + 622121-3 + 121 (a) V1 = V12 = 0 (b) 12 = 112 = 012 = 0 (c) B21 = 121 = 622 = 0 (d) $12 = 112 = 0 3. For a Cholesky decomposition shown below, which of the following is NOT correct about the relationship between the structural shock & and the reduced form shock et? 82.1 (a) Ent = en,t (b) &.t = ez,t (c) Ez,t = a281,t + age2,t + e3,t (d) E2,t = @181,t + e2,t