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One of the key questions in macroeconomics is the relationship between the employment growth rate (e) and real GDP (g). By using the average growth

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One of the key questions in macroeconomics is the relationship between the employment growth rate (e) and real GDP (g). By using the average growth rates of employment and real GDP from 25 countries for the period 1990-2010, we get the following results: e = 0.74 g = 2.94. TSS = 15.23 SSR = 6.24 25 25 (e; - e)(gi - g) = 32.12 (gi - g)2 = 62.37 i=1 i= 1 (a) Can you calculate the regression coefficients for the following regression model? ei = Bo + B1gi + ui (b) Interpret your regression coefficients and calculate the predicted value of e when g = 3.15

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