Economics - Econometrics - Regression analysis - Interpreting Regression Output
Given a regression output: Y = 2.5 + 0.8X₁ - 1.2X₂, R² = 0.65, where Y = GDP growth, X₁ = investment rate, X₂ = inflation rate. Questions: 'A 1 unit increase in investment rate is associated with ___ unit change in GDP growth' (0.8 increase). 'A 1 unit increase in inflation is associated with ___ un