The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 52

Multiple Choice

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-3
Refer to Figure 22-3.What is total autonomous expenditure?

• A)$300
• B)$325
• C)$650
• D)$1000
• E)$1975

Calculate and interpret confidence intervals for means and proportions.

Understand the assumptions underlying different statistical tests and when they are met.

Recognize and apply the appropriate statistical test for different types of data and research questions.

Determine sample size and its influence on statistical inference.