If There Is an Increase in Government Purchases, Real GDP

question 62

Multiple Choice

If there is an increase in government purchases, real GDP will

• A)increase by more than the amount of the purchases.
• B)increase by less than the amount of the purchases.
• C)not change.
• D)increase by the amount of the purchases.
• E)decrease by less than the amount of the purchases.

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Definitions:

SST

Often refers to the Total Sum of Squares, which is a measure used in statistical analysis to quantify the variation within a set of observations.

Linear Regression

A statistical method that models the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.

F Test

A statistical test used to determine whether there are significant differences between the variances of two or more groups.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.