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3. Show the steps to run FGLS on a static model with autocorrelated distur- bances. How does FGLS eliminate the problem of autocorrelation when we

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3. Show the steps to run FGLS on a static model with autocorrelated distur- bances. How does FGLS eliminate the problem of autocorrelation when we think ut = p ut-1 + Et, where Et is distributed iid N(0, 1)

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