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In a regression, x is the unemployment rate (measured in %, with a value of 10 indicating a 10% unemployment rate) and y is the rate of wage growth (in %, with a value of 1 indicating that wages grew 1% last year). Which of the following is a correct interpretation for the b1 in the regression equation:
y= b0 + b1x
a) When the unemployment rate is 1 percentage point higher, on average wage growth is b1 percentage points higher
b) If wage growth is 1% then the unemployment rate increases by b1 %
c) the unemployment rate increases by b1 percentage points for every one percentage point increase in wage growth
d) The correlation coefficient between the unemployment rate and wage growth is b1
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