SCENARIO 14-3
-Referring to Scenario 14-3, one economy in the sample had an aggregate consumption level of $4
Billion, a GDP of $6 billion, and an aggregate price level of 200.What is the residual for this data
Point?
A) $4.39 billion
B) $0.39 billion
C) - $0.39 billion
D) - $1.33 billion

Question

SCENARIO 14-3 
-Referring to Scenario 14-3, one economy in the sample had an aggregate consumption level of $4
Billion, a GDP of $6 billion, and an aggregate price level of 200.What is the residual for this data
Point?
A) $4.39 billion 
B) $0.39 billion 
C) - $0.39 billion 
D) - $1.33 billion

Quizplus · Accepted Answer

The residual is calculated as the difference between the observed value and the predicted value. In this case, the residual is $4 billion (observed consumption) minus the predicted consumption based on the GDP and price level, which is $4.39 billion, resulting in a residual of -$0.39 billion.

SCENARIO 14-3 -Referring to Scenario 14-3, One Economy in the Sample Had