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

---

Definitions:

Criticisms

Evaluations or judgments given for the purpose of indicating areas in need of improvement or correction.

Unrepresentative Sample

A sample that does not accurately reflect the distribution or characteristics of the larger population from which it is drawn.

Rational Image

An idealized image of oneself that is based on logical reasoning and how one wishes to be perceived by others.

Cognitive Complexity

A psychological characteristic or variable that indicates the complexity of a person's thought processes, including their ability to consider multiple perspectives and integrate disparate information.