Suppose That a Country Has an Inflation Rate of About

question 102

Multiple Choice

Suppose that a country has an inflation rate of about 3 percent per year and a real growth rate of about 6 percent per year. Suppose also that it has nominal GDP of about 200 billion units of currency. What is the highest possible deficit it can have without raising the debt-to-income ratio?

• A)just under 18 billion units
• B)just under 12 billion units
• C)just under 9 billion units
• D)just under 1 billion units

Distinguish between observational studies and experiments.

Recognize appropriate blocking variables in experimental designs.

Understand the concept of a time series and identify its four components: long-term trend, cyclical variation, seasonal variation, and random variation.

Apply exponential smoothing techniques to forecast future values of a time series.

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