If an Increase in Investment Causes an Increase in Real

question 95

Multiple Choice

If an increase in investment causes an increase in real output beyond the full-employment level,the result will be

• A)Demand-pull inflation.
• B)An increase in the recessionary GDP gap.
• C)Cost-push inflation.
• D)An increase in undesired inventories.

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Definitions:

Sample Variances

Sample variances measure the dispersion or spread of data points in a sample around their sample mean, indicating the degree of variation within the sample.

Expected Value

The long-run average value of repetitions of the experiment it represents, known in statistics as the mean of the probability distribution.

Sample Means

Sample Means are the averages calculated from a sample, used as estimates of the population mean.

Normally Distributed

A statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve.