Suppose that in estimating the Okun's Law regression model, we use real GDP (RGDP) as the dependent variable and only the unemployment rate (UR) as the explanatory variable (we do not use TREND, CPI, or M1). Test this model to see if first-order autocorrelation is present. If autocorrelation is present, try to correct for it using first-differences.

Suppose that in estimating the Okun's Law regression model, we use real GDP (RGDP) as the dependent variable and the unemployment rate (UR) and TREND as explanatory variables. Test this model to see if first-order autocorrelation is present. Did adding TREND to the first model in Question 3 reduce autocorrelation? You need not correct for autocorrelation if present in this new model.

Data is in this worksheet: https://drive.google.com/file/d/1_UWI6T5dwxVcTFSGK4x8-kQ__nXxe4xk/view