The Larger the Absolute Value of the T Statistic of the Slope

question 9

True/False

The larger the absolute value of the t statistic of the slope in a simple linear regression, the stronger the linear relationship exists between X and Y.

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Definitions:

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from work.

Recessionary Gap

A scenario in which the actual GDP of an economy falls short of its potential GDP, showing that resources are not being fully utilized.

Aggregate Demand

The total demand for all goods and services within an economy.

Real GDP

The total value of all goods and services produced by an economy over a specific time period, adjusted for inflation, reflecting the true economic output.