SCENARIO 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 SCENARIO 13-3, what is the predicted consumption level for an economy withGDP 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

SCENARIO 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 SCENARIO 13-3, what is the predicted consumption level for an economy withGDP 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 predicted consumption level is calculated using the given GDP and aggregate price index. The correct choice is based on the specific economic model or formula provided in SCENARIO 13-3, which indicates that with a GDP of $4 billion and a price index of 150, the consumption level is $2.89 billion.

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