Refer to the Following Model

question 14

Multiple Choice

Refer to the following model. y_t = α₀ + β₀s_t+ β₁s_t-1 + β₂s_t-2+ β₃s_t-3 + u_t
Β₀ + β₁ + β₂ + β₃represents:

• A)the short-run change in y given a temporary increase in s.
• B)the short-run change in y given a permanent increase in s.
• C)the long-run change in y given a permanent increase in s.
• D)the long-run change in y given a temporary increase in s.