Suppose that you have collected data on U.S. real personal consumption expenditures (cons) and U.S. real...

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Suppose that you have collected data on U.S. real personal consumption expenditures (cons) and U.S. real disposable personal income (disinc). You begin by computing Icons = In (cons), consgrowth = 400x Alcons, linc = In (disinc), and incgrowth = 400xlinc. You next estimate an AR(3) model for consumption growth (consgrowth) and an ADL(3,1) model for consumption growth with income growth (incgrowth) as the additional predictor. The results are as follows: consgrowth, = 1.292 +0.200 consgrowth +0.181 consgrowth,2 +0.214 consgrowth, and consgrowth, = 1.146 +0.127 consgrowth +0.152 consgrowth, +0.223 consgrowth, +0.139 incgrowth,... Use the regression results above and the data given in the table below to answer questions [4] and [5]. Consumption Growth and Income Growth, Quarterly, 2017 Quarter 2017Q1 201702 201703 201704 Consumption Growth (consgrowth) 3.13 1.79 2.27 4.08 Income Growth (incgrowth) 4.23 4.28 2.71 2.27 Suppose that you have collected data on U.S. real personal consumption expenditures (cons) and U.S. real disposable personal income (disinc). You begin by computing Icons = In (cons), consgrowth = 400x Alcons, linc = In (disinc), and incgrowth = 400xlinc. You next estimate an AR(3) model for consumption growth (consgrowth) and an ADL(3,1) model for consumption growth with income growth (incgrowth) as the additional predictor. The results are as follows: consgrowth, = 1.292 +0.200 consgrowth +0.181 consgrowth,2 +0.214 consgrowth, and consgrowth, = 1.146 +0.127 consgrowth +0.152 consgrowth, +0.223 consgrowth, +0.139 incgrowth,... Use the regression results above and the data given in the table below to answer questions [4] and [5]. Consumption Growth and Income Growth, Quarterly, 2017 Quarter 2017Q1 201702 201703 201704 Consumption Growth (consgrowth) 3.13 1.79 2.27 4.08 Income Growth (incgrowth) 4.23 4.28 2.71 2.27

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4 Based on the AR3 model what is the predicted consumption growth rate for the fourth quarter of 201... View the full answer