Autonomous consumption equals:R0 R4m R10 m R16 m R40 m Investment equals:R4 m R10 m R12 m R16 m R40 m A (Rm)A = Y'A, = C+/40A = C2816104Y (Rm)1040Study the above diagram and answer questions 6 to 8:

Answered: Autonomous consumption equals: R0…

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Autonomous consumption equals: R0 R4m R10 m R16 m R40 m Investment equals: R4 m R10 m R12 m R16 m R40 m

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Autonomous consumption equals:

R4m

R10 m

R16 m

R40 m

Investment equals:

R4 m

R10 m

R12 m

R16 m

R40 m

A (Rm)
A = Y
'A, = C+/
40
A = C
28
16
10
4
Y (Rm)
10
40
Study the above diagram and answer questions 6 to 8:

Expert Solution

Step 1

Autonomous consumption: - autonomous means independent, therefore, autonomous consumption is that level of consumption that is independent of the level of income and cannot be avoided because every person consumes something even if he does not have any income.

Investment spending: - it is the expenditure on the purchase of new capital goods.

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