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.

Question

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The long-run cumulative dynamic multiplier is the sum of all individual dynamic multipliers.

The Long-Run Cumulative Dynamic Multiplier