Question: () I generated the impulse response diagrams from the VAR model with the Cholesky ordering ALGPRICE and INF. Response to Cholesky One S. D. (d.f.

 () I generated the impulse response diagrams from the VAR modelwith the Cholesky ordering ALGPRICE and INF. Response to Cholesky One S.

() I generated the impulse response diagrams from the VAR model with the Cholesky ordering ALGPRICE and INF. Response to Cholesky One S. D. (d.f. adjusted) Innovations + 2 analytic asymptotic S.E.s Response of DGPRICE to DGPRICE In novation Response of DGPRICE to INF Innovation 05 05 .114 104 03 .02 .02 .01 .01 00 00 1 5 7 9 10 1 2 4 5 6 9 10 Response of INF to DGPRICE Innovation Response of INF to INF Innovation J.H 7.4 14 2.0 2.0 1.6 1.6 1.2 1.2 II.H 0.4 1 2 3 4 5 6 7 9 10 1 2 3 4 5 7 8 9 10What can you infer about the persistence of the shock INF on itself compared to the shock of s-LGPHICE on itself? [2] : {ij Looking at the impulse response diagrams. what can you infer about the short-run dynamic response of inflation to quSPHIrIEshock'? [2] : {n} I produced the impulse response function with the Cholesl-o,r ordering IMF and sLLTPHICE. Why do I need to produce this additional impulse response function based on a different Cholesl-o'.r ordering? [2]

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