Forward Regression

question 17

Multiple Choice

Forward regression

• A)begins with all potential explanatory variables in the equation and deletes them one at a time until further deletion would do more harm than good.
• B)adds and deletes variables until an optimal equation is achieved.
• C)begins with no explanatory variables in the equation and successively adds one at a time until no remaining variables make a significant contribution.
• D)randomly selects the optimal number of explanatory variables to be used.

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Definitions:

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically help stabilize an economy by reducing the severity of economic fluctuations without additional government intervention.

Disposable Income

The residual financial power of households for savings and consumption post the subtraction of income taxes.

Inflationary Pressure

Situations where upward trends in prices are predicted due to factors such as increased production costs or rising demand.

Classical Economists

Refers to economists from the 18th and early 19th centuries who focused on economic growth, free markets, and the importance of limited government intervention.