TABLE 13-3 an Economist Is Interested to See How Consumption for an for an Economy

question 177

Multiple Choice

TABLE 13-3
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 13-3, what is the predicted consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?

• A) $1.39 billion
• B) $2.89 billion
• C) $4.75 billion
• D) $9.45 billion

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Definitions:

Inventory

The total amount of goods or materials held by a business, intended for sale or production purposes, requiring efficient management to optimize supply chain operations.

Promotion

Marketing activities aimed at increasing awareness, interest, and sales of a product or service, often involving advertising, sales, and public relations strategies.

Distribution

The process involved in moving a product from the manufacturer or supplier to the consumer, including transportation, warehousing, and retailing.

Technological Forces

Technological forces are the factors related to technological advancements and innovations that affect the operations, competitiveness, and survival of businesses and industries within the economic environment.