If the MPC Were

question 12

Multiple Choice

If the MPC were .5,what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to rise by 100?

• A)An increase of 20.
• B)An increase of 50.
• C)An increase of 100.
• D)An increase of 200.
• E)An increase of 250.

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Definitions:

Mean Squared Error

A measure of the average squared differences between estimated and actual values, used to evaluate the accuracy of statistical models.

Exponential Smoothing

A time series forecasting method for univariate data that applies weighing factors which decrease exponentially over time.

Mean Absolute Deviation

A measure of variability that indicates the average distance between each data point and the mean of the data set.

Forecasting Methods

Techniques used to predict future events or trends based on analysis of past and present data, crucial in planning and decision-making processes.