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You are interested in studying the relationship between unemployment, inflation (cpi), and the federal minimum wage with the following linear model, unem, = Bo +
You are interested in studying the relationship between unemployment, inflation (cpi), and the federal minimum wage with the following linear model, unem, = Bo + cpi, B1 + minwage, B2 + 183 Which of the following statements correctly argues for the A3a (contemporaneous exogeneity) assumption to hold in this model. Current time period minimum wage and inflation are uncorrelated with current time period error O Current time period minimum wage and inflation are uncorrelated with future error O Current time period minimum wage and inflation are uncorrelated with past error O Error is uncorrelated over time
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