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d) Interpret the Impulse Response functions in the graph below of a 1-standard deviation impulse to the change in log GDP 17 var1, D.Igdp, D.Igdp

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d) Interpret the Impulse Response functions in the graph below of a 1-standard deviation impulse to the change in log GDP 17 var1, D.Igdp, D.Igdp var1, D.Igdp, inflation var1, D.Igap, unemp 01 1 0- .005 .2 -.4- -.0057 6- var1, inflation, D.Igap var1, inflation, inflation var1, inflation, unemp 001 - 2 6 0- 4 -.001 2 -.002 O -.003 var1, unemp, D.Igdp var1, unemp, inflation var1, unemp, unemp 001 6- 0- -.001- 2 -.002 -.003- - 1 4 8 12 16 20 4 8 12 16 20 8 12 16 20 step 95% CI orthogonalized irf Graphs by irfname, impulse variable, and response variable

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