Given the Augmented Phillips Model: Given the Augmented Phillips Model

question 100

Multiple Choice

Given the augmented Phillips model: Given the augmented Phillips model: y = β₀ + β₁x₁+β₂x₂ +ε,where y = actual rate of inflation (%) ,x₁ = unemployment rate (%) ,and x₂ = anticipated inflation rate (%) .The response variable or variables(s) in this model is (are) the ___________________.

• A) unemployment rate
• B) actual inflation rate
• C) anticipated inflation rate
• D) unemployment rate and anticipated inflation rate

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Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Placebos

Inactive substances or treatments used in controlled experiments to test the effectiveness of another substance or treatment.

Experimenter Bias

A process where the scientists conducting an experiment inadvertently influence the results, affecting the validity of the data collected.

Dependent Variables

In scientific research, the variable being tested and measured, expected to change in response to variations in the independent variable.