The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y.
B) a change in X by one unit is associated with a ?1 change in Y.
C) a change in X by one unit is associated with a 100 ?1 % change in Y.
D) a 1% change in X is associated with a change in Y of 0.01 ?1.
Answer: C) a change in X by one unit is associated with a 100 ?1 % change in Y.
Economics
You might also like to view...
In the above figure, point C represents
A) a recessionary gap. B) a full-employment equilibrium. C) an inflationary gap. D) a decrease in aggregate demand.
Economics
Refer to Figure 3-1. A decrease in the price of a complementary good would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Economics