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For the model Yt = β1 Yt-1+ ut, if β1 = 1, would the model be stationary or non-stationary and what would the model be referred to as?

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MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance. 
 


For the model Y<sub>t</sub> = β<sub>1 </sub>Y<sub>t-1</sub>+ u<sub>t</sub>, if β<sub>1</sub> = 1, would the model be stationary or non-stationary and what would the model be referred to as?





 
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