QUESTIONS:

#1. Interpret the results of the two models.

#2. Were these models "good fits" of the y-variable? Explain.

#3. Which variables were the best predictors of the real GDP growth rate in 2013?

#4. Which is the better model? Explain.

#5. What can we learn comparing Model A to Model B? Explain.

#6. The population variable LOGPOP is insignificant, should I throw it out of the model?

#7. According to the Phillips Curve, Unemployment Rate and Inflation Rate are inversely related. What explains the negative sign on the coefficients for both Unemployment and Inflation?

#8. The Unemployment Rate variable was one of the more powerful predictors of real GDP growth rate, what would be the rationale be for dropping Unemployment Rate from the specification?

#9. The constant term was statistically significant in both Models, which estimate should be believed?

#10. Why did the WAR variable fall apart in Model B? #11. In an international dataset, why does is the proportionate number of old people in society negatively correlated with the economic growth rate?

#12. If the negative coefficient on ELDERLY makes sense, why is the coefficient on YOUTH also negative? Suggest a "specification based" solution to this question of the relationship of age to real GDP growth rate.

Price: $15.08

Solution: The downloadable solution consists of 4 pages, 1108 words.
Deliverable: Word Document