Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6
-Refer to Figure 8.6. Aggregate consumption is 960 when aggregate income is
A) $800.
B) $950.
C) $1,000.
D) $1,125.

Question

Refer to the information provided in Figure 8.6 below to answer the questions that follow.  Figure 8.6
-Refer to Figure 8.6. Aggregate consumption is 960 when aggregate income is
A) $800. 
B) $950. 
C) $1,000. 
D) $1,125.

Quizplus · Accepted Answer

The point where the consumption function intersects the 45-degree line (the line where Y = C) is the point where aggregate consumption equals aggregate income. In this case, that point is at $1,000.

Refer to the Information Provided in Figure 8