Consider the following regression output on a sample of quarterly data from 1980-2021.
Unem = 2.3 + 2.1 Dt - 2.3 Xt - 0.8 (DtXt)
t = (1.91) (4.43) (3.15) (1.14)
R2 = 0.73
Where;
Unem = Unemployment rate of Malaysia in %
D = 1 for period after 2020 quarter 1, and 0 otherwise
t = time in quarters
X = job experience in %
n =

Required:

(a) Would you expect the regression output to be different if D is defined as: D=1 for period after 2020q1, and 2 otherwise? (3 marks)

(b) Provided that job experience is kept constant, what is the average unemployment for the period after 2020q1? Is it statistically different from the mean unemployment for the period before 2020q1? Provide evidence for your claim. (8 marks)

(c) Is the slope in the pre- and post-2010 statistically different? Why? (5 marks)