Problem 2 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 (91 - 9)2 = 62.37 1= 1 (a) Can you calculate the regression coefficients for the following regression model? el = Bot Bigit up (b) Interpret your regression coefficients and calculate the predicted value of e when g = 3.15. (c) Suppose that the heteroskedastic robust standard error on the estimated B, coefficient from the regression above is 0.25. Carry on a two-sided hypothesis test on the null hypothesis that 1 = 0 and report your decision, based on a 1% significance level. Next, repeat the same exercise but now using the standard error that is not adjusted for heteroskedasticity, which in this case is 0.19. What would be your decision now, again based on the same 1% significance level? Discuss the results