If we respecify the regression of equation (13.34) in the log-log form of equation

(13.35), we obtain

(a) Is the slope for the natural log of the CPI statistically significant? Why or why not?

(b) Interpret the value of the slope for the natural log of the CPI, referring to equation (13.39). Is this elasticity big or small? Why?

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In(GNI per capita)=6.394+1.7331n(CPI)+e. (.2323)(.1590)