Exhibit 10-4

-Refer to Exhibit 10-4.If the present level of disposable income is YS_d1autonomous consumption is equal to

Question

Exhibit 10-4 -Refer to Exhibit 10-4.If the present level of disposable income is YS_d1autonomous consumption is equal to

Quizplus · Accepted Answer

Autonomous consumption is the level of consumption that occurs even with no income. In Exhibit 10-4, the horizontal axis represents disposable income and the vertical axis represents consumption. At the point where the consumption function intersects the vertical axis (where disposable income is zero), the level of consumption is C₀. Therefore, this is the level of autonomous consumption.

Exhibit 10-4 -Refer to Exhibit 10-4.If the Present Level of Disposable Income