-In the figure above, the induced consumption when real GDP is $6 trillion is
A) $6 trillion.
B) zero.
C) $1 trillion.
D) $4 trillion.

Question

-In the figure above, the induced consumption when real GDP is $6 trillion is
A) $6 trillion. 
B) zero. 
C) $1 trillion. 
D) $4 trillion.

Quizplus · Accepted Answer

Induced consumption is the part of consumption that changes with changes in income. If real GDP is $6 trillion and the consumption function shows that consumption at this level is $4 trillion, then the induced consumption is $4 trillion.

-In the Figure Above, the Induced Consumption When Real GDP