The Probability of an Outcome

question 45

Multiple Choice

The probability of an outcome

• A)is the number of times that the outcome occurs in the long run.
• B)equals M × N, where M is the number of occurrences and N is the population size.
• C)is the proportion of times that the outcome occurs in the long run.
• D)equals the sample mean divided by the sample standard deviation.

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Definitions:

GDP

The total market value or monetary sum of all final goods and services produced within a nation's boundaries during a defined timeframe is known as Gross Domestic Product.

Multiplier

In economics, a factor that quantifies the impact of an initial change in spending, income, or investment on the broader economy, amplifying the initial effect.

Inflationary Gap

A macroeconomic term referring to the situation where the demand for goods exceeds the supply, leading to increased prices or inflation.

Inflationary Gap

A situation where aggregate demand in an economy exceeds aggregate supply at the full employment level, leading to inflation.