Which One of the Following Could Cause a Recessionary Gap

question 151

Multiple Choice

Which one of the following could cause a recessionary gap?

• A)Interest rates are too low.
• B)Consumers spend more than they earn.
• C)Price levels are too high.
• D)Businesses spend more than they save.

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Definitions:

Independent Variable

A variable in an experiment or model that is manipulated or categorized to observe its effect on the dependent variable(s).

Least Squares Estimate

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the model.

Independent Variable

In scientific research, the factor that is deliberately adjusted or controlled to test its effect on the outcome being studied.

Regression Equation

A formula that represents the relationship between a dependent variable and one or more independent variables, used to predict or estimate outcomes.