You Recall from One of Your Earlier Lectures in Macroeconomics

question 47

Essay

You recall from one of your earlier lectures in macroeconomics that the per capita
income depends on the savings rate of the country: those who save more end up
with a higher standard of living.To test this theory, you collect data from the
Penn World Tables on GDP per worker relative to the United States (RelProd)in
1990 and the average investment share of GDP from 1980-1990 (sK ),
remembering that investment equals saving.The regression results in the
following output: $$\begin{array} { l } \widehat { \text { RelProd } } = 0.08 + 2.44 \times s _ { K } , R ^ { 2 } = 0.46 , S E R = 0.21 \\\quad\quad\quad\quad\quad( 0.04 ) ( 0.38 ) \\\end{array}$$ (a)Interpret the regression results carefully.

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Definitions:

Antifoundational

A philosophical stance rejecting the idea of universal truths or principles, arguing that foundation claims cannot justify themselves.

Queer Theory

A field of critical theory that emerged in the early 1990s, examining the discourses of sexuality and gender, challenging the normative framework surrounding them.

Social Reality

The sum of social constructs, norms, and relationships that define and shape a society's perception of reality.

Revolutionary Potential

The capacity or likelihood of a society or group to undergo significant, radical change or revolution.