Use the following to answer questions:
-(Figure: The Aggregate Consumption Function and Planned Aggregate Expenditure)Use Figure: The Aggregate Consumption Function and Planned Aggregate Expenditure.If disposable income decreases,then the:

Question

Use the following to answer questions: 
-(Figure: The Aggregate Consumption Function and Planned Aggregate Expenditure)Use Figure: The Aggregate Consumption Function and Planned Aggregate Expenditure.If disposable income decreases,then the:

Quizplus · Accepted Answer

A decrease in disposable income will lead to a decrease in consumption expenditure, which will lead to a decrease in planned aggregate expenditure. This will cause the economy to move downwards along the planned aggregate expenditure curve.

Use the Following to Answer Questions