We Are Investigating the Relationship Among Three Variables

question 81

Multiple Choice

We are investigating the relationship among three variables.We have graphed two of them.Suppose that the variable that is not measured on the x-axis or the y-axis changes.Then,there is

• A)no impact on the plotted curve because the variable is not measured on either of the axes.
• B)an omitted variable.
• C)a shift in the plotted curve.
• D)a violation of the absence of trend assumption.
• E)a movement along the plotted curve.

---

Definitions:

Recessionary Gap

The difference between the actual output of an economy and the output it could produce at full employment.

Time Lags

The delay between the initiation of a process or an action and its effect or result.

Real GDP

The total value of all goods and services produced over a specific time period, adjusted for inflation, reflecting the true growth of an economy.

Unemployed Workers

Individuals who are capable of working and willing to work but are unable to find suitable employment.