Table 11-1
-Refer to Table 11-1.What is the level of consumption in this model?
A)2,950
B)2,750
C)2,550
D)2,350
E)2,150

Question

Table 11-1 
-Refer to Table 11-1.What is the level of consumption in this model?
A)2,950 
B)2,750 
C)2,550 
D)2,350 
E)2,150

Quizplus · Accepted Answer

In the model shown in Table 11-1, the level of consumption is equal to disposable income (Y) minus taxes (T) plus transfers (TR) minus saving (S). Plugging in the values from the table, we get:

C = Y - T + TR - S 
C = 3,000 - 500 + 250 - 1,000 
C = 2,750

Therefore, the level of consumption in this model is $2,750.

Table 11-1 -Refer to Table 11-1.What Is the Level of Consumption in of Consumption