Assuming society’s mpc is constant so an aggregate of income of $3000 aggregate consumption would be Refer to the information provided in Table 1 below to answer the questions that follow.| Aggregate Income ($ billion) | Aggregate Consumption ($ billion) ||------------------------------|----------------------------------|| 0 | 200 || 400 | 500 || 800 | 800 || 1,200 | 1,100 || 1,600 | 1,400 |**Explanation:**The table presents data on aggregate income and aggregate consumption, both measured in billions of dollars. The values show how consumption patterns change as income levels increase. For example:- When aggregate income is $0 billion, aggregate consumption is $200 billion.- When aggregate income reaches $1,600 billion, aggregate consumption increases to $1,400 billion.This table can be used to analyze the relationship between income and consumption, often useful in understanding economic behavior in macroeconomic studies.

Aggregate consumption function is the combination of autonomous consumption and consumption…

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Assuming society’s mpc is constant so an aggregate of income of $3000 aggregate consumption would be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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