Question: Explain the term spurious regression and provide an example from economic timeseries data. 1===+EXercise 16.1 The file gdp_uk.wfl contains data for the UK GDP in

Explain the term spurious regression and provide an example from economic timeseries data.

1===+EXercise 16.1 The file gdp_uk.wfl contains data for the UK GDP in quarterly frequency from 1955 until 1998. Check for the possible order of integration of the GDP variable using both the ADF and the PP tests following the steps described in Figure 16.5.

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