A Sample of 92 Observations Is Taken from an Infinite

question 43

Multiple Choice

A sample of 92 observations is taken from an infinite population. The sampling distribution of is approximately

• A) normal because is always approximately normally distributed
• B) normal because the sample size is small in comparison to the population size
• C) normal because of the central limit theorem
• D) None of these alternatives is correct.

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Definitions:

Spending Multiplier

The ratio of a change in aggregate income to the initial change in spending that brought it about, illustrating the larger impact on income.

Government Purchases

Expenditures made by the public sector on goods and services, including infrastructure and public safety.

Net Taxes

The total amount of taxes collected by the government minus any transfer payments and subsidies.

GDP

Gross Domestic Product, a measure of the economic performance of a country, evaluating the total value of all goods and services produced over a specific time period.