If Total Spending Rises from One Year to the Next

question 167

Multiple Choice

If total spending rises from one year to the next, then

• A)the economy must be producing a larger output of goods and services.
• B)goods and services must be selling at higher prices.
• C)either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both.
• D)employment or productivity must be rising.

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Definitions:

Sampling Error

A difference between the sample statistic and the actual population parameter, which occurs by chance because the sample is not a perfect representation of the population.

Sample Statistic

A numerical measure that describes an aspect of a sample taken from a population.

Population Parameter

A numerical value that summarizes a characteristic for the entire population.

Directional Hypothesis

A prediction specifying the expected direction of the relationship between variables, indicating either a positive or negative association.