For Each One Dollar Increase in Real GDP, Aggregate Planned

question 13

Multiple Choice

For each one dollar increase in real GDP, aggregate planned expenditure

• A)increases by less than a dollar.
• B)is unaffected.
• C)increases by one dollar.
• D)increases only if autonomous expenditure increases.
• E)increases by more than a dollar.

---

Definitions:

Population Parameter

A value, such as a mean or standard deviation, that describes a characteristic of an entire population.

Normal Distribution

A distribution pattern in probabilities that is balanced around the mean, signifying that data points near the mean have a higher frequency of occurrence compared to those far from the mean.

T Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.

Degrees of Freedom

The number of independent values or quantities which can vary in an analysis without breaking any constraints.