Which of the Following Would Have the Biggest Payoff

question 153

Multiple Choice

Which of the following would have the biggest payoff?

• A)eliminating the Okun Gap
• B)increasing the Okun Gap
• C)making the Okun Gap equal the Lucas Wedge
• D)increasing the Lucas Wedge
• E)restoring real GDP growth to its 1960s growth rate

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Definitions:

Insignificant Variables

Variables in a statistical model that do not have a significant impact on the model's ability to predict or describe the outcome.

Variables

Any characteristic, number, or quantity that can be measured or quantified, which changes or varies across different situations or observations.

Crime Rates

Quantitative measures that reflect the number of crimes committed per unit of population or area in a specific time frame.

Pearson Correlation Coefficients

A measure of the linear correlation between two variables X and Y, giving a value between -1 and 1 inclusive, where 1 is total positive linear correlation, 0 is no linear correlation, and -1 is total negative linear correlation.