On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. ? CONSUMPTION (Billions of dollars) 700 600 500 400 300 200 100 0 -100 0 100 200 300 400 500 600 DISPOSABLE INCOME (Billions of dollars) 700 800 From the preceding data, you know that the level of savings in the economy last year was $ economy is billion and the marginal propensity to save in this Suppose that this year, disposable income is projected to be $500 billion. Based on your analysis, you would expect consumption to be $ billion and savings to be s billion.
On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. ? CONSUMPTION (Billions of dollars) 700 600 500 400 300 200 100 0 -100 0 100 200 300 400 500 600 DISPOSABLE INCOME (Billions of dollars) 700 800 From the preceding data, you know that the level of savings in the economy last year was $ economy is billion and the marginal propensity to save in this Suppose that this year, disposable income is projected to be $500 billion. Based on your analysis, you would expect consumption to be $ billion and savings to be s billion.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data.
?
CONSUMPTION (Billions of dollars)
700
600
500
400
300
200
100
0
-100
0
100
200
300
400
500
600
DISPOSABLE INCOME (Billions of dollars)
700
800
From the preceding data, you know that the level of savings in the economy last year was $
economy is
billion and the marginal propensity to save in this
Suppose that this year, disposable income is projected to be $500 billion. Based on your analysis, you would expect consumption to be $
billion and savings to be s
billion.
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