concepts rev

# concepts rev - Intercept a(what Y is when X is 0 Slope...

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Adam Y.C. Lei ECON 2333 Macroeconomic Principles: Concepts Review (Appendix for Chapter 1) Data: Facts or information organized in a manner suitable for display, processing, or analysis. Variable: A letter, symbol, or name that represents a value or an economic concept. Dependent variable: Y A variable that is influenced by external forces (i.e., independent variables). Independent variable: X A variable thought to influence the value of another variable (i.e., the dependent variable) The relation between two variables: Tabular representation Graphic representation Linear relation vs. nonlinear relation Equation of a straight line: Y = a + bX (e.g., Y = 3 + 2X)
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Unformatted text preview: Intercept: a (what Y is when X is 0) Slope: b (how much Y changes when X changes by 1 unit) Slopes could be positive, negative, zero, or infinite Parameters: a and b Estimates: a = 3 and b = 2 Changes in the intercept: Lead to parallel shifts of the line Changes in the slope: Lead to rotations of the line The slope of a curve: Different points on a curve may have different slopes. X Y Slope Δ Δ = . Δ means “the change in.” Changes in percentage terms: From \$100 (X ) to \$105 (X 1 ): % 5 05 . 100 5 100 100 105 1 = = = − = − = Δ X X X X X...
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