I am struggling with this problem as I missed the class on the topic and the textbook isn't helping out. I have tried to find resources explaining how to work through it but I can't seem to find an answer.
The accompanying data table shows quarterly observations on income (Y) and money supply (X) in a certain country. Estimate the model
yt = B0+B1xt+((gamma)yt-1)
and report your findings.
(Round the constant to the nearest integer as needed. Round the coefficients to four decimal places as needed.)
Here is the data:
Money supply: 42011, 43313, 44808, 46729, 50094, 52117, 54253, 56512, 59243, 60783, 62189, 66338, 68694, 72238, 74544, 77300, 80021, 83482, 85868, 87911
The accompanying data table shows quarterly observations on income (Y) and money supply (X) in a certain country. Estimate the model
yt = B0+B1xt+((gamma)yt-1)
and report your findings.
(Round the constant to the nearest integer as needed. Round the coefficients to four decimal places as needed.)
Here is the data: