Refer to the Information Provided in Table 22 The Data in the Table Was Used to Estimate the Answer

question 4

Multiple Choice

Refer to the information provided in Table 22.3 below to answer the question(s) that follow.
Table 22.3
$$\begin{array} { | c | c | c | } \hline \text { Point } & \begin{array} { c } \text { Aggregate } \\\text { Income } ( \boldsymbol { Y } ) \end{array} & \begin{array} { l } \text { Aggregate } \\\text { Consumption } ( \boldsymbol { C } ) \end{array} \\\hline \boldsymbol { A } & 15 & 19 \\\hline \boldsymbol { B } & 30 & 23 \\\hline C & 45 & 27 \\\hline D & 60 & 31 \\\hline E & 75 & 35 \\\hline F & 90 & 39 \\\hline\end{array}$$ The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y
-Refer to Table 22.3. Which of the following points is (are) the best fit for the given consumption function?

• A) A
• B) A, B, C and D
• C) D and F
• D) E

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Definitions:

General Price Level

An index that shows the average price of goods and services across the economy over a period of time.

Real Wages

Wages adjusted for inflation, reflecting the purchasing power of income earned from work.

Output per Worker

A measure of labor productivity calculated as the total output produced divided by the number of workers.

Market Supply Curve

A graphical representation showing the quantity of a good that sellers are willing and able to sell at different prices.