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According to the rational expectations hypothesis, unemployment
Coefficient Of Correlation
A measure that determines the degree to which two variables' movements are associated, ranging from -1 to 1.
Independent Variable
A variable that is manipulated in an experiment to observe its effect on the dependent variable, without being influenced by other variables.
Dependent Variable
The variable in an experiment that is expected to change in response to manipulations of the independent variable.
Least Squares Regression Line
A straight line that minimizes the sum of the squared differences between the observed and theoretical values.
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