If a Model Contains Uncertain Outputs,it Can Be Very Misleading

question 36

Multiple Choice

If a model contains uncertain outputs,it can be very misleading to build a deterministic model by using the means of the inputs to predict an output.This is called the

• A)Law of Large Numbers.
• B)Flaw of Averages.
• C)Law of Inevitable Disappointment.
• D)Central Limit Theorem.

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Definitions:

Full Employment

When a society’s resources are all being used with maximum efficiency.

Monetarists

Monetarists believe in controlling the supply of money as a method for regulating the economy and combating inflation.

National Income

A measure of the total value of all goods and services produced by a country over a specific period, typically adjusted for net income from foreign investments.

Money

A medium of exchange that facilitates the sale, purchase, or trade of goods and services, acting as a unit of account, a store of value, and a standard of deferred payment.