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

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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. 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 $4 billion, a GDP of $6 billion, and an aggregate price level of 200. What is the residual for this data point? A)  $4.39 billion B)  $0.39 billion C)  -$0.39 billion D)  -$1.33 billion
-Referring to Table 14-3, one economy in the sample had an aggregate consumption level of $4 billion, a GDP of $6 billion, and an aggregate price level of 200. What is the residual for this data point?

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Definitions:

Purchases

Transactions involving the buying of goods or services for the purpose of resale or direct use in production or operations.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures such as buildings or equipment, indicating the company's ability to generate additional revenues.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment to improve its long-term operations and growth.

Cash Dividends

A portion of a company's earnings distributed to shareholders in the form of cash.

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