Figure 84 Alt Text for Figure 8

question 10

Multiple Choice

Figure 8.4 Alt text for Figure 8.4: In figure 8.4, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.4: The x-axis is labelled, real GDP, Y (trillions of 2002 dollars) .The y-axis is labelled, real aggregate expenditure, AE (trillions of 2002 dollars) .Line AE1, begins a little less than half way along the x-axis and slopes up to the end of the x-axis.Line AE2, begins half way along the x-axis and slopes up to the top right corner.Line AE2 is to the right of line AE1 and is on a similar path as line AE1.Line Y = AE, originates at the vertex and slopes up to the top right corner.Line Y = AE meets line AE2 at point K, half way along both lines.Line Y = AE meets line AE1 at point N, plotted close to the right end of line AE1.Point J is plotted a little less than half way along line AE2, to the left of point K.Point L is marked close to the right end of line AE2, to the right of point K.
-Refer to Figure 8.4.Suppose that the level of GDP associated with point K is potential GDP.If the Canadian economy is currently at point N,

• A)firms are operating below capacity.
• B)the economy is at full employment.
• C)the economy is in an expansion.
• D)the level of unemployment is above the natural rate.
• E)the economy is in a recession.

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Definitions:

Z-test

A statistical method employed to ascertain if there's a difference between the means of two populations when the variances are established and the sample size is significant.

Chi-square Goodness-of-fit

A statistical test that measures how well observed sample data fit the expected distribution from a given hypothesis.

Contingency Table

A type of table in a matrix format that displays the frequency distribution of the variables. It helps in analyzing the relationship between two categorical variables.

Qualitative Variables

Variables that express categorical data, representing types or qualities rather than numbers.