Figure 9-2
-In Figure 9-2,a change in autonomous consumption to 100 would cause the consumption function to

Question

Figure 9-2 
-In Figure 9-2,a change in autonomous consumption to 100 would cause the consumption function to

Quizplus · Accepted Answer

An increase in autonomous consumption would shift the consumption function upward, as shown in Figure 9-2. This is because at every level of disposable income, consumers will now consume an additional $100, leading to a higher level of aggregate consumption. The slope of the consumption function would remain unchanged, so it would not become steeper or flatter.

Figure 9-2 -In Figure 9-2,a Change in Autonomous Consumption to 100 Would