An Economist Is Interested to See How Consumption for an Economy

question 50

Multiple Choice

An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) . Annual data from 30 years were collected. Which of the following would be the most appropriate analysis to perform?

• A) simple linear regression
• B) multiple linear regression
• C) exponential smoothing
• D) autoregressive modeling for trend fitting and forecasting

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Definitions:

Domesticated

Describes animals or plants that have been selectively bred and adapted over generations to live alongside humans for agricultural, work, or companionship purposes.

Evolutionary Psychologist

A scientist who studies the mind and behavior through the lens of evolutionary theory, focusing on how evolutionary principles influence human thoughts and actions.

Natural Selection

The process by which traits become more or less common in a population due to consistent effects upon the survival or reproduction of their bearers.

Fear Strangers

is an instinctual response often observed in infants and animals, where they exhibit fear or anxiety towards unfamiliar individuals.