A Forward Procedure Is a Type of Equation Building Procedure

question 23

True/False

A forward procedure is a type of equation building procedure that begins with only one explanatory variable in the regression equation and successively adds one variable at a time until no remaining variables make a significant contribution.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Leakage

Any diversion of income from the domestic spending stream; includes saving, taxes, and imports.

Circular Flow

A model in economics that describes the movement of resources, goods and services, and money among different sectors in an economy.

Leakages-Injections Approach

An economic understanding and analysis of how savings, taxes, and imports (leakages) offset government spending, investments, and exports (injections) in the circular flow of income.