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Suppose that the quarterly growth rates rt of an economy follows the model rt = 0.006 + 0.168rt1 + 0.338rt2 0.189rt3 + at, at N(0,

Suppose that the quarterly growth rates rt of an economy follows the model rt = 0.006 + 0.168rt1 + 0.338rt2 0.189rt3 + at, at N(0, 0.0016) a) What is the expected growth rate of rt? b) Does the model imply existence of business cycles? Why? c) What is the average length of business cycles of the economy, if any

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