Here is the inflation equation: inflat = β0 + β1*money + β2*output + u 'inflat' is the growth rate of the general price

[answerhappygod]

Here is the inflation equation:
inflat = β0 + β1*money + β2*output + u
'inflat' is the growth rate of the general price level,
'money' is the growth rate of the money supply,
'output' is the growth rate of national output.
β1 = 1, β2 = -1.
Below are the 4 instrumental variables proposed for the
endogenous variable of 'output':
'initial' = initial level of real GDP,
'school' = a measure of the population's educational
attainment,
'inv' = average investment share of GDP,
'poprate' = average population growth rate.
The dataset is called 'brumm.csv'
Using R language, obtain OLS estimates of the inflation equation
and report regression results. Test the economic theory using the
OLS estimates. You are encouraged to use the lm() functions.