Refer to the Following Model Y_t = ₀

question 20

Multiple Choice

Refer to the following model y_t = ₀ + ₀s_t + ₁s_t-1 + ₂s_t-2 + ₃s_t-3 + u_t
This is an example of a(n) :

• A)infinite distributed lag model.
• B)finite distributed lag model of order 1.
• C) finite distributed lag model of order 2.
• D) finite distributed lag model of order 3.

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Definitions:

Idle Capacity

The available but unused capacity of a company to produce goods or services without incurring additional fixed costs.

Absorption Costing

A method of inventory costing in which all costs of production (both variable and fixed) are treated as product costs.

Variable Costing

Variable Costing is an accounting method that only allocates variable costs to inventory and cost of goods sold, excluding fixed manufacturing overhead from inventory valuation.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and net income.