What Would Be the Cause of a 2% Increase in Nominal

question 132

Multiple Choice

What would be the cause of a 2% increase in nominal GDP?

• A) a 1% increase in prices of and a 3% decrease in output
• B) a 1% decrease in prices and a 1% increase in output
• C) a 1% increase in prices and a 1% increase in output
• D) a 3% increase in prices and a 1% increase in output

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Definitions:

Observations

Individual data points or recorded measures from a study or experiment.

Independent Variables

Factors in a model or experiment that are deliberately altered to study their impacts on outcome variables.

Collinearity

A statistical phenomenon where two or more predictor variables in a multiple regression model are highly correlated, making it difficult to isolate the individual effects of each predictor.

Odds Ratio

The odds that y = 1 given that one of the independent variables increased by one unit (odds1) divided by the odds that y = 1 given no change in the values for the independent variables (odds0); that is, Odds ratio = odds1 / odds0.