The Business Cycle Component of the Log of Real Per

question 35

Multiple Choice

The business cycle component of the log of real per capita GDP is equal to

• A) log of trend GDP divided by log of actual real GDP.
• B) log of trend per capita GDP - log of actual real per capita GDP.
• C) log of actual real GDP divided by log of trend GDP.
• D) log of trend GDP - log of actual real GDP.
• E) log of actual real per capita GDP - log of trend per capita GDP.

---

Definitions:

Null Hypothesis

A statement used in statistics that suggests there is no significant difference or effect, serving as the default assumption to be tested.

Chi-Squared Test

A statistical test used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.

P-Value

A statistical measure that helps scientists determine the significance of their research results; a low p-value indicates strong evidence against the null hypothesis.

Binomial Distribution

A probability distribution that summarizes the likelihood that a variable will take one of two independent values under a given number of observations.