Question: How do you ensure causality in an econometric model? Explain with an example. How does the modern view about regression differ from the traditional view?

  1. How do you ensure causality in an econometric model? Explain with an example.
  2. How does the modern view about regression differ from the traditional view? Examine with an example.
  3. How does Eviews calculate the intercept of a linear regression model? Explain.

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