Article Summary Gains in Consumer and Business Spending Gave GDP a Bigger

question 263

Multiple Choice

Article Summary
Gains in consumer and business spending gave GDP a bigger boost than was forecast in the third quarter of 2017, growing at an annualized rate of 3 percent. Motor vehicle sales following the hurricanes that struck Texas and Florida are being credited for much of the gain in consumer spending, which grew at an annualized rate of 1.6 percent, and a steady job market, low inflation, and low interest rates are expected to sustain consumer spending. Residential investment remained weak, but nonresidential investment increased 3.9 percent. Government spending declined slightly, and after-tax income increased by 0.6 percent after being adjusted for inflation.

-Refer to the Article Summary. The increase in GDP discussed in the article summary was due in part to increases in nonresidential investment. Increases in nonresidential investment will cause a(n) ________ the aggregate expenditure curve.

• A) movement up along
• B) movement down along
• C) downward shift of
• D) upward shift of

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Definitions:

Inferential Statistics

A branch of statistics that deals with drawing conclusions and making predictions about a population based on a sample.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure how the other tested subjects do.

Naturalistic Observation

An investigative approach where participants are studied in their natural settings without interference from the researcher.

Correlational Analysis

A method used to determine the degree to which two or more variables are related without determining cause and effect.