(Requires Appendix Material)Define the Difference Operator Δ = (1 -

question 13

Essay

(Requires Appendix material)Define the difference operator Δ = (1 - L)where L is the lag operator,such that LjYt = Yt-j.In general, = (1- Lj)i,where i and j are typically omitted when they take the value of 1.Show the expressions in Y only when applying the difference operator to the following expressions,and give the resulting expression an economic interpretation,assuming that you are working with quarterly data:
(a)Δ4Yt
(b) Yt
(c) Yt
(d) Yt

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