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Suppose that a research has estimated the following relationship for

Question : Suppose that a research has estimated the following relationship for : 5392

Suppose that a research has estimated the following relationship for the US unemployment rate:

a.) Derive the homogenous solution. What does the homogeneous solution tell us about the long-run stability of this estimated equation?

b.) Derive the particular solution using the method of undetermined coefficients.

Please show all your work for both parts thanks!

ut -0.5 0.5 ut-1 0.7ut-2 Et 2

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