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:

Psychotherapy

A therapeutic treatment approach aimed at helping individuals understand their feelings, and to make positive changes in their behaviors and thought processes.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are pathological (diseased or disordered) and that cause significant distress or impairment to personal functioning.

Eclectic Approach

To therapy that results from combining elements of several different approaches or techniques.

Psychiatrists

Medical doctors specialized in diagnosing, preventing, and treating mental illness, with the ability to prescribe medication.