Suppose the Fitted (Assumed Causal) Regression Line for Your Data

Multiple Choice

Suppose the fitted (assumed causal) regression line for your data is as follows: Log(Output) = 6.2 + 0.4 × Log(Labor) + 0.5 × Log(Capital)
Interpret the coefficient on Log(Labor) .

A) Holding capital fixed, when labor goes up by 1, output goes up by 0.4
B) Holding capital fixed, when labor goes up by 1, output goes up by 6.6
C) Holding capital fixed, when labor goes up by 1%, output goes up by 0.4%
D) Holding capital fixed, when labor goes up by 1%, output goes up by 40 units