An Economist Is Interested to See How Consumption for an Economy

question 53

Multiple Choice

An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) . Annual data from 30 years were collected. Which of the following would be the most appropriate analysis to perform?

• A) Simple linear regression
• B) Multiple linear regression
• C) Exponential smoothing
• D) Autoregressive modeling for trend fitting and forecasting