The data provided in the table are for the full sample (84 observations for Q1Y2000-Q4Y2020), estimate the following regression: ut−ut−1=β1+β2(%Δyt)+ϵ Where ut is the unemployment rate at time t and yt is real GDP at time t (thus, %Δyt is the growth rate between t−1 and t.) Information: ΣXY = 0.0027124;  ΣX2 =0.1215623; ΣX = 1.8349077; ΣY = 0.235 Question: What are the values of the β^2 and the β^1 estimates?

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The data provided in the table are for the full sample (84 observations for Q1Y2000-Q4Y2020), estimate the following regression: ut−ut−1=β1+β2(%Δyt)+ϵ

Where ut is the unemployment rate at time t and yt is real GDP at time t (thus, %Δyt is the growth rate between t−1 and t.)

Information: ΣXY = 0.0027124;  ΣX2 =0.1215623; ΣX = 1.8349077; ΣY = 0.235

Question: What are the values of the β^2 and the β^1 estimates? 

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1.Test the hypothesis that β2=0 against the hypothesis that β2<0 at α=0.01. Assuming a standard error of 0.063935 the test statistic is and the critical value is?

2.The above suggests that the null hypothesis...

 
  • A. is not rejected.
  • B. is rejected

    3.
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