HELLO,

PLEASE HELP ME WITH THIS QUESTION. IT'S QUITE URGENT.

I WILL GIVE YOU POSITIVE RATINGS.

Consider the foliowing estimated equation: amp, = 15.7491 + 1.1248 1705:2002: 1.1294 growtht 0.8511 post2002t - growtht (3.1022) [0.3171] (0.1218) [0.4294] n = 51 R2 = 0.5128. where unemp is unempioyment rate in percent. growth is the growth rate of GDP per capita in percent, post2002 is a dummy variable taking on the value 1 for the period beginning in 2002 (when the old system of unemployment benefits was replaced by a new. much more generous system), t is time in years, Suppose the growth rate was 5.5 percent in 2001. a) Holding growth constant, what is the average unemployment rate in the years starting from 2002? Is it statistically different from the period before 2002? How do you know? b) Are the slopes in the pre- and post-2002 statistically different? How do you know? 0) Is it safe to conclude from this study that generous unemployment benefits lead to higher unemployment rates? Does this make economic sense