Consider the macroeconomics identity C + I = Y ( = GDP) As before, assume that C t = 0 + 1 Y

Consider the macroeconomics identity

C + I = Y ( = GDP)

As before, assume that

C_t = β₀ + β₁Y_t + u_t

and, following the accelerator model of macroeconomics, let

I_t = α₀ + α₁(Y_t − Y_t−1) + v_t

where u and v are error terms. From the data given in Exercise 18.10, estimate the accelerator model and save the results for further study.