Refer to the information provided in Figure 24.1 below to answer the question(s) that follow. Figure 24.1
-Refer to Figure 24.1. At equilibrium, the part of consumption that is dependent on income equals $________ billion.

Question

Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.  Figure 24.1
-Refer to Figure 24.1. At equilibrium, the part of consumption that is dependent on income equals $________ billion.

Quizplus · Accepted Answer

At the point of equilibrium, the consumption function intersects with the 45-degree line. From the graph, this occurs at a level of disposable income of $1,000 billion. Therefore, the part of consumption that is dependent on income (i.e. autonomous consumption) is also $1,000 billion.

Refer to the Information Provided in Figure 24