For the Following Question(s), Suppose an Economy Produces Only Pens

question 18

Multiple Choice

For the following question(s) , suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:

-What is the real GDP in year 2 using base year 2?

• A) $418.
• B) $300.
• C) $360.
• D) $338.
• E) $414.

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Definitions:

Linear Relationship

A relationship between two variables where a change in one variable is associated with a proportional change in the other variable.

Correlation Coefficient

A statistical metric that determines the strength of the connection between the relative changes of two variables.

Correlation Coefficient

A statistical indicator that measures the intensity of the link between the relative fluctuations of two variables.

Coefficient of Correlation

A quantitative index showing the magnitude and direction of a linear correlation between two variables.