1) In a system of equations, consider the following spending equation: Spending = a + b [Disposable Income} + 5 Suppose Disposable Income is subject to simultaneitt.f problem. The reduced form equations suggest a linear relation between Disposable Income and Population. Data follows: Year Spending Disposable Income Population 1991 3.1 3.9 10.4 1992 5.9 6.7 10.6 1993 3.9 5.1 10.7I 1994 7.1 8.1 10.8 1995 5.3 5.1 11.0 1a} Calculate DLS and 2SLS estimate for the Spending coefficients. 1.b) Test if the simultaneity problem is statistically significant. 1.c} Assess whether population is a good choice for use in this model as an instrumental variable