In Analyzing Macroeconomic Data During the Past Year,you Have Discovered

question 56

Multiple Choice

In analyzing macroeconomic data during the past year,you have discovered that average labour productivity fell,but total output increased.What was most likely to have caused this?

• A)Government deficit was reduced.
• B)The capital/output ratio probably rose.
• C)There was an increase in labour input.
• D)Unemployment probably increased.

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Definitions:

Residuals

The difference between the observed values of the dependent variable and the values predicted by the model in regression analysis.

Scatterplots

Graphs in which the values of two variables are plotted along two axes, the pattern of the resulting points revealing any correlation present.

Linear Model

A mathematical approach used in statistics to model the relationship between a scalar response and one or more explanatory variables.

Model

An abstract representation of a system or process, used to simulate and predict behavior or outcomes.