Use the figure below to answer the following questions.
Figure 11.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 11.1.1.Consumption and disposable income are equal

Question

Use the figure below to answer the following questions.
  Figure 11.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 11.1.1.Consumption and disposable income are equal

Quizplus · Accepted Answer

Consumption and disposable income are equal at the point where the consumption function intersects the 45-degree line from the origin, which represents where all income is consumed (no saving or dissaving). This typically occurs at a lower level of income, where households consume all their income due to basic needs. The specific disposable income value where this occurs can vary based on the consumption function's parameters, but given the options, the correct answer is when disposable income is $500 billion, assuming this is the point of intersection as per the provided choices.

Use the Figure Below to Answer the Following Questions