When R² =

question 13

True/False

When R² = .95 this means that independent variables are not just correlated, but that they caused 95% of the variation in the independent variables.

---

Definitions:

Frictionally Unemployed

Individuals temporarily unemployed while transitioning between jobs, often viewed as a natural part of the labor market.

Rate of Inflation

The rate of inflation is the annual percentage increase in the overall price level of goods and services in an economy over a period of time.

Unemployment Rate

The percentage reflecting those who are in the labor force and are not employed, yet are seeking employment.

Cost-push Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc. It’s when the supply side of the economy’s production function becomes more expensive.