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Estimating the okun law regression model

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Reference no: EM132901888

Suppose that in estimating the Okun's Law regression model, we use real GDP (RGDP) as the dependent variable and only the unemployment rate (UR) as the explanatory variable (we do not use TREND, CPI, or M1). Test this model to see if first-order autocorrelation is present. If autocorrelation is present, try to correct for it using first-differences.

Reference no: EM132901888

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