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For this part, select any other series in the file assignment1.zip and answer the following questions:

Create a scatter plot of your series expressed in logs against the selected series also expressed in

logs.

• Using the log of the selected series, compute its cyclical component. Then create a scatter plot

of this cycle with the cycle of your series computed in Part B.

Looking at the two scatter plots, what can you say about the type of comovement between the

two series?