Now consider a linear forecast model of the form $Y_{t+1} = mY_t$.
$Y_t$ stands for GDP in year t. $Y_{t+1}$ stands for GDP in year t+1. For example, if t = 2010 then
t+1=2011.
The table above does not show GDP in the year 2011: it is unknown. It t+1 is considered to be
2011, however, then $Y_{t+1}$ (otherwise known as $Y_{2011}$) can be forecast by plugging in two specific
values on the righthand side.
Please answer the following questions:
In the linear forecast model shown above, the letter m is the parameter
In the linear forecast model shown above, $Y_t$ is the output variable