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Suppose That You Plot the Residuals from a Regression of GDP

Question 17

Multiple Choice

Suppose that you plot the residuals from a regression of GDP on the unemployment rate and you get the following Suppose that you plot the residuals from a regression of GDP on the unemployment rate and you get the following You would conclude that the error terms are A) definitely autocorrelated. B) likely not autocorrelated. C) possibly autocorrelated and you would perform a formal test for autocorrelation. D) possibly autocorrelated and you would perform a correction for heteroskedasticity.
You would conclude that the error terms are


A) definitely autocorrelated.
B) likely not autocorrelated.
C) possibly autocorrelated and you would perform a formal test for autocorrelation.
D) possibly autocorrelated and you would perform a correction for heteroskedasticity.

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