Question: a. Suppose you're exploring alternative methods to detect breaks in the relationship between manufacturing employment and the real exchange rate post-NAFTA implementation. Upon using the

a. Suppose you're exploring alternative methods to detect breaks in the relationship between manufacturing employment and the real exchange rate post-NAFTA implementation. Upon using the Quandt-Andrews (QLR) statistic with 15% trimming, you observe a peak of 3.11 in 1994:Q3. Discuss the significance of this peak regarding the hypothesis of a break in the ADL(2,2) regression. b. Evaluate the reliability and interpretation of this peak in discerning structural changes in the relationship after NAFTA's implementation

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