To Use a Correlation, You Must First Establish That It

question 29

True/False

To use a correlation, you must first establish that it is statistically significant from one.

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Definitions:

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Keynes

refers to John Maynard Keynes, a British economist whose theories on the causes of prolonged unemployment and recommendations for government intervention in economies to stimulate demand and control inflation have had a significant influence on modern macroeconomics.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan to sell during a specific time period.

Aggregate Demand

The total demand for goods and services within an economy at a given time and price level.