What Is the Long Run Solution to the Following Dynamic $\Delta$

question 13

Multiple Choice

What is the long run solution to the following dynamic econometric model? $\Delta$ y_t = $\beta$ ₁ + $\beta$ ₂ $\Delta$ X_2t + $\beta$ ₃ $\Delta$ X_3t + u_t

• A) y = \(\beta\)₁ + \(\beta\)₂X₂ + \(\beta\)₃X₃
• B) y_t = \(\beta\)₁ + \(\beta\)₂X_2t + \(\beta\)₃X_3t
• C) y = - (\(\beta\)₂/ \(\beta\)₁) X₂ - (\(\beta\)₃ / \(\beta\)₁)X₃
• D) There is no long run solution to this equation

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