Refer to the information provided in Table 36.3 below to answer the question(s) that follow. Table 36.3 PointAggregate Income (Y)Aggregate Consumption (C)  A  15  19   B  30  23  C  45  27  D  60  31  E  75  35   F  90  39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 36.3. Which of the following points is (are) the best fit for the given consumption function?

A. A
B. A, B, C and D
C. D and F
D. E

Answer: D

Economics

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GDP underestimates our economic well-being:

a. for of all the following reasons. b. because it includes the value of work done by nannies. c. because it ignores leisure. d. because it includes the value of work done by householders. e. because it includes the value of work done by illegal immigrants.

Economics

Suppose the price level falls. The result is that the:

a. aggregate supply curve would shift to the right. b. aggregate supply curve would shift to the left. c. general price level would rise causing a movement up the aggregate demand curve. d. aggregate demand curve would slope downward because of the real balances effect.

Economics