Consider a Simple Macro Model with a Constant Price Level

question 61

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.Desired consumption expenditure at equilibrium national income is

• A)1675.44.
• B)4060.04.
• C)4830.00.
• D)4980.00.
• E)6815.40.

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Definitions:

Spearman Rank

A rank correlation metric that is non-parametric and evaluates the extent to which two variables' association can be explained through a monotonic function.

Pearson Correlation

A statistical coefficient expressing the degree of linear relationship between two variables, measured on a scale from -1 to 1.

Ranking Data

A method of organizing data by assigning an ordinal or rank order to different values based on their size or importance.

Sample Spearman

Sample Spearman refers to the computation of Spearman's rank correlation coefficient on a sample data set to assess the monotonic relationship between two variables.