Exhibit 9-2 -We Can Tell from the Data in Exhibit 9-2 That

question 4

Multiple Choice

Exhibit 9-2
$$\begin{array} { c c c c c c } \begin{array} { c } \text { Income } = \\\text { output } \\\text { (Y) }\end{array} & \mathrm { C } & \begin{array} { c } \text { Planned } \\\text { investment }\end{array} & \begin{array} { c } \text { Aggregate } \\\text { expenditure }\end{array} & \begin{array} { c } \text { Unintended } \\\text { inventory } \\\text { adjustment }\end{array} & \begin{array} { c } \text { Actual } \\\text { investment }\end{array} \\\hline \$ 1,200 & \$ 1,240 & \$ 200 & \$ 1,440 & - \$ 240 & - \$ 40 \\1,400 & 1,380 & 200 & 1,580 & - 180 & - 20 \\1,600 & 1,520 & 200 & 1,720 & - 120 & 80 \\1,800 & 1,660 & 200 & 1,860 & - 60 & 140 \\2,000 & 1,800 & 200 & 2,000 & 0 & 200 \\2,200 & 1,940 & 200 & 2,140 & 60 & 260 \\2,400 & 2,080 & 200 & 2,280 & 120 & 320\end{array}$$
-We can tell from the data in Exhibit 9-2 that planned investment is autonomous because

• A)actual investment is constant at each level of income
• B)it does not vary as consumption changes
• C)it does not vary as income changes
• D)it does not vary as the actual investment changes
• E)it does not vary as the price level changes

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Definitions:

Probability Distribution

Describes how the values of a random variable are distributed, showing the probabilities of different outcomes occurring.

Variance

A measure of the spread or dispersion of a set of values, calculated as the average of the squared deviations from the mean.

Random Variable

A variable that reflects numerical outcomes attributed to random occurrences.

Occurrences

The instances or number of times an event or condition appears or is observed.