Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11
-Refer to Figure 8.11. [50 + 0.75Y] represents the
A) autonomous consumption function.
B) MPC.
C) aggregate expenditures function.
D) MPS.

Question

Refer to the information provided in Figure 8.11 below to answer the questions that follow.  Figure 8.11
-Refer to Figure 8.11. [50 + 0.75Y] represents the
A) autonomous consumption function. 
B) MPC. 
C) aggregate expenditures function. 
D) MPS.

Quizplus · Accepted Answer

[50 + 0.75Y] represents the aggregate expenditures function, which is the total amount of spending in an economy at a given level of income. The autonomous consumption function refers to the level of consumer spending that does not depend on income, while the MPC (marginal propensity to consume) and MPS (marginal propensity to save) represent the change in consumer spending and saving in response to changes in income, respectively.

Refer to the Information Provided in Figure 8