Answered: Graphically illustrate the aggregate…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 4QP

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Graphically illustrate the aggregate consumption and saving functions. Explain

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The consumption is the using of the income and resource to purchase the commodities and services that provides the utility or level of satisfaction to the people who consume them. Thus, the process of consumption is the action of consuming something which satisfies human needs and wants. The aggregate consumption is the consumption function of the economy which means that the consumption function of the country as a whole.

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