An Economist Is Interested to See How Consumption for an Economy

Multiple Choice

An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) . Annual data from 30 years were collected. Which of the following would be the most appropriate analysis to perform?

A) simple linear regression
B) multiple linear regression
C) exponential smoothing
D) autoregressive modeling for trend fitting and forecasting