Exhibit 10.5 The Information Below Is Used for the Following Questions

question 28

Essay

Exhibit 10.5
The information below is used for the following questions.
A counselor wants to classify people as belonging to one of three groups based on two scores. The counselor has collected data on twenty people who are known to be in one of the three groups. The data for the problem are in the following spreadsheet. Relevant output is also included. ​ ​ ​ ​ ​
-Refer to Exhibit 10.5. Based on the 20 observations in the model complete the following confusion/classification matrix.

---

Definitions:

Deflationary Gap

A condition in which aggregate demand is lower than the aggregate supply potentially leading to deflation.

Full Employment GDP

The total value of all goods and services produced when the economy is operating at full employment, with no cyclical unemployment.

Federal Budget Deficit

The financial situation that occurs when a government spends more money than it receives in revenue, typically measured over a fiscal year.

Fiscal Policy

The use of government spending and taxation to influence the economy, including efforts to adjust the level of aggregate demand through public expenditure and taxation rates.