Refer to the information provided in Table 23.3 below to answer the question(s) that follow.
Table 23.3
-Refer to Table 23.3. Assuming society's MPC is constant at an aggregate of income of $2,000, aggregate consumption would be
A) $1,500.
B) $1,600.
C) $1,700.
D) $1,800.

Question

Refer to the information provided in Table 23.3 below to answer the question(s) that follow.
Table 23.3 
-Refer to Table 23.3. Assuming society's MPC is constant at an aggregate of income of $2,000, aggregate consumption would be
A) $1,500. 
B) $1,600. 
C) $1,700. 
D) $1,800.

Quizplus · Accepted Answer

From the table, when aggregate income is $2,000, autonomous consumption is $300, and MPC is 0.8. Therefore,
Aggregate consumption = Autonomous consumption + (MPC × Aggregate income)
Aggregate consumption = $300 + (0.8 × $2,000)
Aggregate consumption = $1,700. Therefore, the answer is choice C.

Refer to the Information Provided in Table 23