TABLE 14-3 an Economist Is Interested to See How Consumption for an for an Economy

question 204

Multiple Choice

TABLE 14-3
An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) . The Microsoft Excel output of this regression is partially reproduced below.
-Referring to Table 14-3, one economy in the sample had an aggregate consumption level of $3 billion, a GDP of $3.5 billion, and an aggregate price level of 125. What is the residual for this data point?

• A) $2.52 billion
• B) $0.48 billion
• C) -$1.33 billion
• D) -$2.52 billion

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Definitions:

Ethological Displacement

A behavior that occurs when an animal or human engages in an unrelated activity to reduce stress or tension when the normal response is thwarted or impossible.

Redirected Behavior

Behavior redirected from its original target to another object or individual, often seen in animals when the primary target of an action is inaccessible.

Ambivalent Behavior

Actions or attitudes that exhibit simultaneous, often conflicting feelings towards a person, object, or situation, such as love and hate.

Evolved Mechanisms

Hereditarily acquired traits and behaviors that have been shaped by natural selection because they contribute to an organism's reproductive success.