4. Consider the following VAR(1) process where y denotes the growth in real per capita GDP and y2, is the inflation: [2]-[8.5 a) [0.5 0.3 1-1 0.0 0.22-1 b) [3²-1] Consider the effect at time t = 0, 1, ..., of a unit shock to y₁, at time t = 0. Trace the impulse-response for the next two periods. Note the shock occurs in the disturbance term (here in terms of u₁) Consider the effect at time t = 0, 1,..., of a unit shock to y2, at time t = 0. Trace the impulse-response for the next two periods (here in terms of v2).

1. A team of biologists stocked a lake with 100 fish of one species to conduct an experiment. They concluded that the rate of increase of the fish population is directly proportional to the population at that time, p(t) as well as to the difference between species' carrying capacity and the current population. The carrying capacity for this fish species in the lake was estimated to be 1000. It was observed that the number of the fish tripled in the first year. What would be the fish population in 5 years?