Following VAR model is estimated for consumption (c) and income (y).

VAR (1) model: ct [ C+ ] = [ 7.058 ] + [0.015_0440 ] [C+1] + [ & ct] Ect. yt 7.657] 0.283] The variance covariance Matrix of the residual vector t= (ct, Eyt) is: a = 50.22. V = 0.12. 0.28- The Cholesky decomposition of _^2= V V gives the matrix 0.12 2.13. L-1.18- 2.16 a-) Calculate the two period impulse response of consumption one unit shock in output. and income to a decomposition of consumption for two b-) Obtain the variance periods ahead.