Question: 2. Using 270 observations for the price level (p) we estimate the following regressions: Apt = -0.037pt-1 +0.272Apt-1-0.230Apt-2 -0.038 +0.014t (0.012) (0.130) (0.092) (0.042) (0.004)

2. Using 270 observations for the price level (p) we estimate the following regressions: Apt = -0.037pt-1 +0.272Apt-1-0.230Apt-2 -0.038 +0.014t (0.012) (0.130) (0.092) (0.042) (0.004) APt = -0.152Apt-1 - 0.552Apt-1 -0.575APt-2 +0.047 (0.056) (0.085) (0.089) (0.023) Values in (.) are the standard errors of the coefficient estimates. What is the order of integra- tion of the price index? (Tables of critical values are provided at the end of this paper. Use 5% level of significance in your tests.) 2. Using 270 observations for the price level (p) we estimate the following regressions: Apt = -0.037pt-1 +0.272Apt-1-0.230Apt-2 -0.038 +0.014t (0.012) (0.130) (0.092) (0.042) (0.004) APt = -0.152Apt-1 - 0.552Apt-1 -0.575APt-2 +0.047 (0.056) (0.085) (0.089) (0.023) Values in (.) are the standard errors of the coefficient estimates. What is the order of integra- tion of the price index? (Tables of critical values are provided at the end of this paper. Use 5% level of significance in your tests.)
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