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

question 100

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, 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

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Definitions:

Confederation Congress

The governing body of the United States under the Articles of Confederation, in operation from 1781 to 1789.

National Commercial Policy

A governmental strategy designed to promote trade, investment, and economic growth within a nation.

Land Ordinance

A foundational legislative act passed in 1785 by the United States Congress for the systematic surveying, planning, and sale of land in the Northwestern Territory.

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A historical region in the early United States, designated in 1787, that included lands west of Pennsylvania and north of the Ohio River.