Refer to the information provided in Figure 23.5 below to answer the question(s) that follow. Figure 23.5
-Refer to Figure 23.5. Aggregate consumption is $875 billion when aggregate income is ________ billion.

Question

Refer to the information provided in Figure 23.5 below to answer the question(s) that follow.  Figure 23.5
-Refer to Figure 23.5. Aggregate consumption is $875 billion when aggregate income is ________ billion.
A) < $800 
B) $800 
C) $900 
D) > $900

Quizplus · Accepted Answer

From Figure 23.5, we can see that the consumption function intersects the 45-degree line (or the Y = X line) at a point where aggregate income is around $900 billion. At this point, aggregate consumption is $875 billion. Therefore, the correct answer is C, $900 billion.

Refer to the Information Provided in Figure 23