endogeneity issue

Explain and discuss what is the issue of endogeneity in the context of this question.

The presence of real GDP, inflation, and lagged dependent variable in the specification in Q5 may lead to an endogeneity issue. a)Explain and discuss what is the issue of endogeneity in the context of this question.[3marks] b)What are the implications of the presence endogeneity on OLS?[2marks] c)How would you accountfor the presence of endogeneity?[3marks][8Marks]

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