In the Short Run, an Increase in Net Exports Causes

question 16

Multiple Choice

In the short run, an increase in net exports causes

• A) an increase in real GDP and the price level.
• B) an increase in real GDP and a decrease in the price level.
• C) a decrease in real GDP and an increase in the price level.
• D) a decrease in real GDP and the price level.

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Definitions:

Quadratic Trend Model

A model used in time series analysis that represents data with a parabolic trend, implying that the rate of change is not constant but accelerates or decelerates over time.

Seasonal Indexes

Factors used to adjust data for seasonal effects, allowing for more accurate analysis of trends over time.

Trend Line

A graphical representation that shows the general direction or pattern in data over a period of time.

Least Squares

A mathematical approach used in regression analysis to minimize the sum of the squares of the differences between observed and predicted values.