The Following Table Shows Real GDP and Potential Real GDP

question 32

Multiple Choice

The following table shows real GDP and potential real GDP for the years 2005-2015. Refer to this table when answering the following questions.
Table 10.1 ($ billions) (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-During which year was the economy in an expansionary gap?

• A) 2001
• B) 2004
• C) 2002
• D) 2003
• E) none of the above

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Definitions:

Probability

The quantification of the chance of an event happening, represented as a number from 0 to 1, with 0 meaning the event is impossible and 1 meaning the event is certain.

P-Value

The probability of observing data at least as extreme as the ones observed, under the assumption that the null hypothesis is true.

Explanatory Variable

A variable in a statistical model that is believed to cause or influence changes in a response variable.

Test Statistic

A test statistic is a calculated value from sample data used in hypothesis testing to determine whether to reject the null hypothesis.