Inventories in the United States

question 52

Multiple Choice

Inventories in the United States

• A) usually move up and down with nominal, but not real, GDP.
• B) usually move up and down with the price component of nominal GDP.
• C) usually move up and down with real GDP.
• D) can occasionally climb or fall relative to real GDP if the macroeconomy is beset by some unexpected downturn or upswing.
• E) c and d.

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Definitions:

Central Limit Theorem

A theory stating that when samples are large enough, their mean will be approximately normally distributed, regardless of the population's distribution.

Standard Error

A statistical measure that quantifies the variability or dispersion of a sample statistic from the population parameter it estimates.

Population Distribution

A term that describes how the values of a variable are distributed across an entire population.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.