The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth

You have collected time series for various macroeconomic variables to test if there is a single cointegrating relationship among multiple variables. Formulate the null hypothesis and compare the EG–ADF statistic to its critical value

(a) Canadian unemployment rate, Canadian Inflation Rate, United States unemployment rate, United States inflation rate; t = (-3.374). (b) Approval of United States presidents (Gallup poll), cyclical unemployment rate, inflation rate, Michigan Index of Consumer Sentiment; t = (-3.837). (c) The log of real GDP, log of real government expenditures, log of real money supply (M2); t = (-2.23). (d) Briefly explain how you could potentially improve on VAR(p) forecasts by using a cointegrating vector. What will be an ideal response?

As hourly wages have risen in the United States in the twentieth century, the number of hours of labor supplied by most wage workers has

a. fallen. b. stayed roughly constant. c. risen. d. generally risen, but has fallen during periods of recession.