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Graphical Representation of Autonomous Consumption
When the aggregate consumption function is depicted on a graph with income (Y) on the horizontal axis and aggregate consumption (C) on the vertical axis, autonomous consumption () is represented by the vertical intercept. This is the point where the consumption line crosses the vertical axis, indicating the level of consumption spending that occurs even when income is zero.
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Economics
Economy
Introduction to Macroeconomics Course
Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
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Empirical Science
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Marginal Propensity to Consume (MPC)
Autonomous Consumption (cā)
An economy's spending behavior is described by the equation C = 200 + 0.75Y, where C is total consumption and Y is total income. If the total income in this economy is 1,000, what is the total aggregate consumption?
An economy's aggregate consumption is described by the equation C = 300 + 0.7Y, where C is total consumption and Y is total income. If total income in this economy increases by $1,000, what is the source of the corresponding increase in total consumption?
Analyzing Shifts in Consumption Behavior
Deriving the Consumption Function from Economic Data
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An economic model of consumption is plotted on a graph where total income is on the horizontal axis and total consumption spending is on the vertical axis. The line representing consumption begins at a value of $100 billion on the vertical axis and slopes upward to the right. What is the economic meaning of this $100 billion value?
Graphical Impact of a Change in Consumer Spending Habits
On a graph where aggregate income is on the horizontal axis and aggregate consumption is on the vertical axis, the amount of spending that occurs regardless of income level is represented by the slope of the consumption line.
Impact of Consumer Confidence on the Consumption Function
On a graph where total consumption spending is plotted on the vertical axis and total income is on the horizontal axis, the value at which the consumption line intersects the vertical axis is known as ____ consumption.