Suppose That in a Particular Economy There Are 2 Million

question 40

Multiple Choice

Suppose that in a particular economy there are 2 million part-time workers,10 million full-time workers,and 4 million unemployed.What is the effect on the unemployment rate of 2 million of the part-timers become full-time workers?

• A)It would decrease.
• B)It would increase.
• C)It would remain unchanged.
• D)The size of the labour force will increase.
• E)There will be no immediate change,but in the long run it will decrease.

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Definitions:

Durbin-Watson Statistic

A test statistic used to detect the presence of autocorrelation at lag 1 in the residuals from a regression analysis.

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, making it difficult to distinguish their individual effects.

Sampling Variability

The natural variation in sample statistics from one sample to another if the experiment or survey were repeated under the same conditions.

Durbin-Watson D Statistic

Utilized in analyzing the extent of autocorrelation in the residuals from regression models, specifically focusing on serial correlation.