Question: Consider once more the CLRM: Yt Bo + Bxt + ... + Bx x xt + Utr a) What is the consequence of applying

Consider once more the CLRM: Yt Bo + Bxt + ... + Bx x xt + Utr a) What is the consequence of applying OLS to estimate and make inference on the model above if the error terms are autocorrelated? b) What tests can you use in order to detect autocorrelation? Discuss. [12 marks] [13 marks]

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