Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. The error for point E is equal to
A. -2.
B. -1.
C. +2.
D. +4.
Answer: A
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A tax on sellers:
A. shifts the supply curve left by the amount of the tax. B. shifts the demand curve left by the amount of the tax. C. shifts the supply curve up by the amount of the tax. D. shifts the demand curve down by the amount of the tax.
Improvements in the productivity of labor will tend to: a. increase the supply of labor. b. increase wages
c. decrease the supply of labor. d. decrease wages.
If government spending increases, which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination.)
a. Short-run increases in the price level, no change in output; long-run increases in output and in the price level b. Short-run increases in output and in the price level; long-run increase in output, decrease in the price level c. Short-run decreases in output and in the price level; long-run increase in the price level, no change in output d. Short-run increases in output and in the price level; long-run increase in the price level, no change in output e. Short-run decreases in output and in the price level; long-run decreases in output and in the price level
If the minimum wage is set above the market clearing wage, wages will be "sticky" in the downward direction.
Answer the following statement true (T) or false (F)