TABLE 14-3
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 14-3, what is the estimated mean consumption level for an economy with GDP equal to $2 billion and an aggregate price index of 90?
A) $1.39 billion
B) $2.89 billion
C) $4.75 billion
D) $9.45 billion

Question

TABLE 14-3
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 14-3, what is the estimated mean consumption level for an economy with GDP equal to $2 billion and an aggregate price index of 90?
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 based on the given GDP and aggregate price index. The correct choice is $1.39 billion, which corresponds to the estimated consumption level for the specified economic conditions.

TABLE 14-3 an Economist Is Interested to See How Consumption for an for an Economy