The Regression R² Is a Measure of

question 53

Multiple Choice

The regression R² is a measure of

• A)whether or not X causes Y.
• B)the goodness of fit of your regression line.
• C)whether or not ESS > TSS.
• D)the square of the determinant of R.

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Definitions:

Expansionary Gap

Occurs when an economy's actual output is higher than the potential output, often leading to higher inflation.

Active Approach

A management strategy where decisions are made using discretionary methods to try to outperform the market or a specific benchmark.

Potential GDP

Potential GDP is the maximum possible output an economy can produce with full employment of its resources, without causing inflation.

Actual GDP

The total market value of all goods and services produced within a country in a specific period, measuring the economy's real output without adjustment for inflation.