The Following Trend Line Was Calculated from Quarterly Data for 1995

question 93

Short Answer

The following trend line was calculated from quarterly data for 1995 - 1999: $\hat { y } = 0.70 + 0.005 t$ where t is 1 for the first quarter of 1995.Calculate the trend value for the second quarter of the year 2000.

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Definitions:

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, keeping all other inputs constant.

Fourth Worker

In the context of diminishing returns, it could refer to a point where adding an additional worker leads to a lesser increase in output.

Marginal Productivity

The extra output that a business gains by adding one more unit of input, such as labor or capital.

Income Distribution

The way in which a country’s total GDP is spread amongst its population, affecting economic equity and quality of life.