When actual real GDP is below natural real GDP, we say that
A) the output gap is positive.
B) the output gap is negative.
C) the output gap has been eliminated.
D) the output gap cannot be calculated.
B
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When using regression analysis for forecasting, the confidence interval indicates
A) the degree of confidence that one has in the equation's R2. B) the range in which the value of the dependent variable is expected to lie with a given degree of probability. C) the degree of confidence that one has in the regression coefficients. D) the range in which the actual outcome of a forecast is going to lie.
Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs b. decrease their sales and increase their costs c. decrease the costs of the components for which they are responsible d. increase the costs of the components for which they are responsible