Y5

You read a paper in which the following regression equation is estimated:

ln(GDP per capita)_i=7.3+0.21ln(economic freedom)_i+e_i,

where ln(economic freedom) is the natural log of the variable that measures the level of economic freedom in the country, ln(GDP per capita) is the natural log of the GDP per capita in dollars. Suppose that in the country you are interested in the level of economic freedom is 3.2. What is the expected GDP per capita in this country in dollars according to the regression equation above?

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