Initial Estimates of the Probabilities of Events Are Known As

question 30

Multiple Choice

Initial estimates of the probabilities of events are known as:

• A)joint probabilities
• B)posterior probabilities
• C)prior probabilities
• D)conditional probabilities

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Definitions:

Potential Level

The highest level of economic output that an economy can sustain over a long period without increasing inflation.

Real GDP

Gross Domestic Product adjusted for inflation, showing the value of all goods and services produced over a specific time period in real, inflation-adjusted terms.

Classical Theory

A school of economic thought that emphasizes the role of free markets in regulating the economy and argues for minimal government intervention.

Employment

The condition of having paid work, or the process or business of hiring workers.