The Long-Run Cumulative Dynamic Multiplier

question 13

Multiple Choice

The long-run cumulative dynamic multiplier

• A)cannot be calculated since in the long-run, we are all dead.
• B)is the sum of all individual dynamic multipliers.
• C)is the coefficient on X_t-r in the standard formulation of the distributed lag model.
• D)is the difference between the coefficient on X_t-1 and X_t-r.

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Definitions:

Subjective Values

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Time Costs

The opportunity costs associated with the time spent on an activity instead of other, potentially more valuable, activities.

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Expenses incurred in making an economic exchange, including search, bargaining, and enforcement of contracts.

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