Table 4.1 -Refer to Table 4.1.Suppose That a Simple Economy Produces Only

question 233

Multiple Choice

Table 4.1
-Refer to Table 4.1.Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans.Assume all of the coffee beans are used in the production of the coffee drinks.Using the information in the above table, nominal GDP for this simple economy equals

• A)$114.50.
• B)3,090 units.
• C)$7,250.
• D)$8,750.
• E)$9,750.

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Definitions:

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models.

Exponential Smoothing

A time series forecasting method for smoothing data points by giving more weight to recent observations while exponentially decreasing the weights for older observations.

Forecast Errors

Discrepancies between the forecasted and actual values in demand forecasting, reflecting the accuracy of predictions.

Time-series Data

A sequence of data points collected or recorded at time-ordered intervals, often used for forecasting or statistical analysis.