Problem
Sitting on an airplane, you are chatting with the person sitting next to you. That person asks you some questions about time series and macroeconometrics. What do you say?
Here are some questions:
1. What is the big deal about stationarity?
2. What's the Phillips curve?
3. What is an expected value and how does the expectation operator (i.e. the E in E(X+Y)) work?
4. What are the rules of the variance operator?
5. What does it mean for a sum to be convergent? In discussions of time series, why do we care about sums converging?
6. What are the ACFs and PACFs useful for?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.