Question: A study on unemployment in the British interwar period produced the following regression equation
Sample period 1920-1938 (n = 19).
U = unemployment rate
B/W = ratio of unemployment benefits to average wage
Q = actual output
Q* = trend predicted output
log Q - log Q* = captures unexpected changes in aggregate demand
The authors23 conclude that the high benefit levels are partly responsible for the high rates of unemployment. Critics of this study argued that when the single observation for 1920 is dropped the results change dramatically." The equation now is
Sample period 1921-1938 (n = 18).
Test whether the results are significantly different from each other.