Refer to the Information Provided in Table 8

question 13

Multiple Choice

Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8
-Refer to Table 8.8. Which of the following statements is false?

• A) At an output level $4,000 million, there is a $400 million unplanned inventory decrease.
• B) If aggregate output equals $4,000 million, then aggregate saving equals $1000 million.
• C) The MPC for this economy is 0.8.
• D) At an output level of $3,000 million, there is a $600 million unplanned inventory decrease.

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Definitions:

Independent Variables

Variables in statistical models that are manipulated or categorized to observe their effect on dependent variables.

Quantitative Predictor Variables

Variables that can be quantified and measured and are used to predict outcomes in statistical analyses.

Indicator Variables

Variables used in statistical models that take the value of 1 if a certain condition is met and 0 otherwise, often used to represent categorical data.

Regression Model

A statistical model used to estimate the relationship between a dependent variable and one or more independent variables.