When Aggregate Expenditure Is More Than GDP,which of the Following

question 166

Multiple Choice

When aggregate expenditure is more than GDP,which of the following is true?

• A)There was an unplanned decrease in inventories.
• B)Firms spent less on capital goods than they planned.
• C)Households bought fewer new homes than they planned.
• D)All of the above must be true when aggregate expenditure is more than GDP.

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Definitions:

Regression Analysis

A statistical method for estimating the relationships among variables, typically one dependent variable and one or more independent variables.

Categorical Data

Data that can be sorted into categories based on qualitative properties or attributes, such as names or labels.

Numerical Data

Information that can be measured or counted and represented in numbers and values.

Multicollinearity

A statistical phenomenon in which two or more independent variables in a regression model are highly correlated, potentially distorting the results.