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(I) How would you test whether inclusion of house price growth lead to an improvement in the forecast of the bivariate model of industrial production

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(I) How would you test whether inclusion of house price growth lead to an improvement in the forecast of the bivariate model of industrial production growth and SLO? (m) Should we keep on including more variables in the VAR system? (n) Derive 1-step and 2step ahead forecasts from a 2variable VAR system

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