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2. The following data shows empirical data on Real Gross Product (measure in New Taiwan dollars), Labor (measured in millions of Man Days), Real Capital 1958-1972. Input (measure in New Taiwan dollars) in the Agricultural Sector of Taiwan, Year GDP 1958 Labor Capital 1959 16,607.70 17.511.30 275.50 17.803.70 1960 274.40 18.096.80 1961 20,171 20 269.70 18,271.80 20.932.90 1962 267.00 19.167.30 20.406.00 1963 267.80 19,647.60 20,831.60 275.00 20,803.50 1964 24,806.30 22,076.60 1965 283.00 26.465.80 300.70 23.445.20 1966 27,403.00 24,939.00 1967 307.50 28,628.70 303.70 26,713.70 1968 29,904.50 304.70 29.957.80 1969 27.508.20 31,585.90 298.60 1970 29.035.50 295.50 33,474.50 1971 34,821.80 29.281.50 299.00 1972 41.794.30 31,535.80 288.10 Source: Damodar Gujurati, Basic Econometrics, 2nd edition. (New York: McGraw-Hill, 1958), p. 191 Suppose that the relationship between the set of capital and labor, and national product is the one that Cobb-Douglas production function assumes. A) Specify the Cobb-Douglass production function in stochastic form. What do the exponents of Labor and Capital measure? (1 Point) B) Is that possible to estimate the exponents directly by applying OLS estimation technique? If not, what should you do before estimating the model? (5 points) C) Interpret R-squared. Is that different from Adjusted R-squared? Why? (3 points) D) Interpret the coefficients properly. ( 2 Points ) E) Test significance of each coefficient using appropriate test. ( 3 points) F) By how much unit does real GDP changes, if both labor and capital changes by 1 unit? [Use an appropriate econometric test] (3 points )