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

question 254

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 estimated mean consumption level for an economy with GDP equal to $2 billion and an aggregate price index of 90?

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

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Definitions:

Festivities

Social events or gatherings, often celebrating particular holidays, cultures, or events, that involve various forms of entertainment and activities.

Group Pressure

The influence exerted by a group on its members to align their attitudes, beliefs, or behaviors with the group norms.

Solomon Asch

He was a psychologist best known for his research on conformity, showing how individuals often conform to the opinions of the majority even when they are contrary to their own beliefs.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is perceived as social norms.