Suppose you were employed as an economic advisor to the President or Prime Minister of your country. The general population has been complaining about the high prices of goods and services as well as decreasing power parity of the domestic currency. The president or prime minister asks you as the economic advisor to explain what could be done about the complaints from the population both in the short and long run, in order to improve people’s livelihoods. Choose five economic variables from any economic database ranging from 1990 to 2020 (Note; Let GDP be the dependent variable while you choose four independent variables of your choice to be the explanatory variables). The variables can either be quarterly, bi-annually or annually. Write a paper that should contain the following with regard to the chosen variables:

1)An introduction 2)Methodology (the following tests should be conducted and interpreted appropriately at 5% level of significance; stationarity test, cointegration test, vector error correction model, stability test, normality test) 3)Conclusion

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Introduction The complaints from the general population about high prices of goods and services and decreasing power parity of the domestic currency a... View the full answer