-The Above Table Gives Data for the Nation of Mouseville

question 99

Multiple Choice

$$\begin{array} { c c c c } \begin{array} { c } \text { Real GDP, } Y \\\text { (billions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Consumption } \\\text { expenditure, } C\end{array} & \begin{array} { c } \text { (billions of 2005 } \\\text { Investment, } I\end{array} & \begin{array} { c } \text { Government } \\\text { expendithare, } G\end{array} \\\text { (billions of 2005 } & \begin{array} { c } \text { (billions of 2005 } \\\text { dollars) }\end{array} & \text { dollars) } \\\hline 100 & 150 & 150 & 150 \\200 & 200 & 150 & 150 \\300 & 250 & 150 & 150 \\400 & 300 & 150 & 150 \\500 & 350 & 150 & 150 \\600 & 400 & 150 & 150 \\700 & 450 & 150 & 150 \\800 & 500 & 150 & 150 \\900 & 550 & 150 & 150 \\\hline\end{array}$$
-The above table gives data for the nation of Mouseville.There are no imports into or exports from Mouseville.Aggregate planned expenditure is less than actual expenditure if real GDP is

• A) more than $800 billion.
• B) less than $800 billion.
• C) $800 billion.
• D) more than $700 billion.
• E) less than $700 billion.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is actually true; a measure of the threshold for the likelihood of a Type I error.

Type II Error

A statistical error that occurs when a hypothesis test fails to reject a false null hypothesis.

Sample Size

The number of observations or replicates included in a statistical sample.

Significance Level

The threshold for rejecting the null hypothesis, representing the probability of committing a Type I error if the null hypothesis is actually true.