You want to determine whether or not the unemployment rate for the United States has a stochastic trend using the Augmented Dickey Fuller Test (ADF). The BIC suggests using 3 lags, while the AIC suggests 4 lags. (a) Which of the two will you use for your choice of the optimal lag length? (b) After estimating the appropriate equation, the t-statistic on the lag level unemployment rate is – 2.186 (using a constant, but not a trend). What is your decision regarding the stochastic trend of the unemployment rate series?

sorry i need points

sorry i need points

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.