In Both Principal Components Analysis and Varimax Rotation, the Factors

question 1

True/False

In both principal components analysis and varimax rotation, the factors are constrained to be uncorrelated or geometrically perpendicular.

---

Definitions:

Price Level

An indicator reflecting the average prices of goods and services in an economy at a given time, showcasing the cost of living and inflation.

Firms' Expectations

The outlook or anticipations of businesses regarding future economic conditions, sales, and profitability, which can influence their investment and production decisions.

Nominal Wage Rates

The amounts of money paid to workers before adjustments for inflation.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often reflected in a price index.