A coffee manufacturer claims that the mean amount of coffee in its 4-ounce jars is 4.1 ounces. A consumer advocate group tests whether or not the true average amount of coffee in the 4-ounce jars differs from 4.1 ounces at the 5% level of significance. Based on a sample of 40 4-ounce jars, they find that the average amount of coffee in 4-ounce jars is 3.9 ounces and the standard deviation is 0.45 ounces. Note:

Assume that the prior distribution of probability of success θ in a single Bernoulli trial has density:

It is believed that the average speed of a train decreases in rainy conditions, in the sense that as the daily rainfall amounts increase, the average speed of a train decreases. Some researchers claim that this decrease is linear. To test this claim, a simple random sample of 40 rainy days in Greece (from November 2011 to November 2015) was collected. For each day, the amount of daily rainfall (in millimeters (mm)) and the average speed of a train on the Athens-Thessaloniki route (in kilometers per hour (km/h)) were recorded. Let X be the continuous random variable representing the amount of daily rainfall, and Y be the continuous random variable representing the average speed of the train on the Athens-Thessaloniki route. It is given that a 95% confidence interval for the regression equation’s parameter  is: (−0.7350529,−0.6230592) with a margin of error of 0.05599685. Recall that the confidence interval equation for the slope of a linear regression equation is:

A decrease in government purchases of $300 billion will shift the aggregate demand curve to the left by

Competitive markets must exhibit which of the following features:

The federal budget deficit acts as an automatic stabilizer because

How might a U.S. federal budget surplus affect the trade balance? (Assume exchange rates are stated in terms of foreign currency per U.S. dollar.)

Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2024 and in 2025 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2025, should it use expansionary or contractionary policy, and what should it do to the federal funds rate?

The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?

Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy. Be sure to detail what happens to aggregate demand, the price level, the level of GDP, and unemployment. Assume that the economy is at full employment before the interest rate increase.