Working with the Aggregate Consumption Function Complete the following questions. 1. Assume there are four individuals in the macroeconomy. Answer the following questions Current Disposable Income Consumer Spending, Cara Consumer Consumer Consumer Spending, Fred Spending, Don Spending, Robin $0 $1,050 $1,350 $1,580 $2,100 1,000 1,200 1,500 1,800 2,400 1,500 2,000 2,500 a. Complete the table: Add the consumer spending for the remaining levels of disposable income for each individual (hint: you need to find the MPC for each, recall that c = a + MPC *YD) b. Using the data after completing the table, compute the aggregate consumption function.
Working with the Aggregate Consumption Function Complete the following questions. 1. Assume there are four individuals in the macroeconomy. Answer the following questions Current Disposable Income Consumer Spending, Cara Consumer Consumer Consumer Spending, Fred Spending, Don Spending, Robin $0 $1,050 $1,350 $1,580 $2,100 1,000 1,200 1,500 1,800 2,400 1,500 2,000 2,500 a. Complete the table: Add the consumer spending for the remaining levels of disposable income for each individual (hint: you need to find the MPC for each, recall that c = a + MPC *YD) b. Using the data after completing the table, compute the aggregate consumption function.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Working with the Aggregate Consumption Function
Complete the following questions.
1. Assume there are four individuals in the macroeconomy. Answer the following questions
Current
Disposable
Income
Consumer
Spending, Cara
Consumer
Consumer
Consumer
Spending, Fred Spending, Don Spending, Robin
$0
$1,050
$1,350
$1,580
$2,100
1,000
1,200
1,500
1,800
2,400
1,500
2,000
2,500
a. Complete the table: Add the consumer spending for the remaining levels of disposable
income for each individual (hint: you need to find the MPC for each, recall that c = a +
MPC *YD)
b. Using the data after completing the table, compute the aggregate consumption function.
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