Using data from a set of 5 different countries graph the effects of changes in Oil rents and Broad money on an AS-AD Model starting at equilibrium starting in 1970 and ending in 2007. As much data is

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Using data from a set of 5 different countries graph the effects of changes in Oil rents and Broad money on an AS-AD Model starting at equilibrium starting in 1970 and ending in 2007. As much data is missing in these records, I would recommend using ‘USA’,’GBR’,’CAN’,’ZAF’ and ‘MEX’, denoted by their ISO3 codes. The code provided in notes 2 and 3 should provide a strong starting point for this analysis. Using this data, and controlling for each country, fit a linear model to analyze the covariance between the predictions of our model and Real GDP per Capital, controlling for properties like trend.Comment on the fit of the model and the standard errors to test whether our model presents model significant levels of covariance between our Predicted Real GDP and Real GDP. Discuss the application and insights of this model to Financial Risk Management and our understanding of the macroeconomy.

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