Essay
A study of United States and Canadian labor markets shows that aggregate
unemployment rates between the two countries behaved very similarly from 1920 to
1982, when a two percentage point gap opened between the two countries, which has
persisted over the last 20 years.To study the causes of this phenomenon, you specify a
regression of Canadian unemployment rates on demographic variables, aggregate demand
variables, and labor market characteristics.
(a)Assume that your analysis is internally valid.What would make it externally valid?
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