Consider a Simple Macro Model with a Constant Price Level

question 65

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.A national income of 1200 results in desired aggregate expenditure of

• A)560.
• B)926.
• C)1004.
• D)1016.
• E)1148.

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Definitions:

Conditional Distributions

The probability distribution of a random variable contingent upon the realization of another variable.

Contingency Table

A contingency table, also known as a cross-tabulation or crosstab, is a table that displays the frequency distribution of variables to analyze the relationship between two or more categorical variables.

Beer

An alcoholic beverage made from fermented grains, typically barley, and flavored with hops.

Wine

An alcoholic beverage made from fermented grapes or other fruits.