Question: Consider the loglinear model: ln Y i = 1 + 2 ln X i + u i Plot Y on the vertical axis

Consider the log–linear model:

ln Y_i = β₁ + β₂ ln X_i + u_i

Plot Y on the vertical axis and X on the horizontal axis. Draw the curves showing the relationship between Y and X when β₂ = 1, and when β₂ > 1, and when β₂ < 1.

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