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 $4 billion and an aggregate price index of 150?
A) $1.39 billion
B) $2.89 billion
C) $4.75 billion
D) $9.45 billion

Question

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 $4 billion and an aggregate price index of 150?
A) $1.39 billion 
B) $2.89 billion 
C) $4.75 billion 
D) $9.45 billion

Quizplus · Accepted Answer

The estimated mean consumption level is calculated using the given GDP and aggregate price index values, which align with the option B value of $2.89 billion.

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