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You Have Collected Time Series for Various Macroeconomic Variables to Test

Question 31

Essay

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).

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