Consider a Simple Macro Model with a Constant Price Level

question 107

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The vertical intercept of the AE function is

• A)60.0.
• B)210.0.
• C)300.0.
• D)414.4.
• E)560.0.

---

Definitions:

Degrees of Freedom

The count of distinct values or amounts that can be attributed to a statistical distribution while respecting all existing limitations.

Multinomial Experiment

An experiment that involves trials where each trial results in one outcome from a set of more than two possible outcomes.

Fixed Number of Trials

A specified, constant number of attempts or operations conducted in an experiment or process, typically used in statistical trials.

Chi-Squared Distribution

A statistical distribution that represents the distribution of the sum of the squares of k independent standard normal random variables.