Consider the Following Equation: Log(y_t )= 0

question 3

Multiple Choice

Consider the following equation: Log(y_t ) = 0.7 + 1.2log(s_t ) + 0.3log(s_t-1) + 0.2log(s_t-2) + 0.1log(s_t-3)
What is the percentage increase in y given a permanent 1% increase in s?

• A)1.2
• B)1.8
• C)2.5
• D)0.5

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Definitions:

Psychologists' Reaction

Refers to the response or feedback of psychologists towards a particular phenomena, study result, or psychological concept based on their professional expertise.

Jungian Concepts

Ideas developed by Carl Jung, a Swiss psychiatrist, which include theories of the collective unconscious, archetypes, individuation, and the psychological significance of dreams and symbols.

Introverted Feeling Types

Personality types characterized by deep emotional experiences, guided by internal values, and often kept private.

Extraverted Thinking Type

A personality disposition characterized by outwardly directed logical reasoning and decision-making.