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When disposable income is $9 trillion. a. How much is autonomous consumption? b.How much is total...

When disposable income is $9 trillion. a. How much is autonomous consumption? b.How much is total consumption? . c.How much is savings?

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Answer #1

a) Autonomus Consumpion = $4 trillion

Autonomous consumption is the level of consumption when disposable income is 0. So, at disposable income= 0 , autonomus consumption is $4 trillion

b)Total Conusmption= $7 trillion

we measure the vertical distance from the horizontal axis (where disposable income is 9) straight up to the C line

c) Disposable Income= Consumption + Savings

9 = 7+Savings

Savings= $2 trillion

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