Refer to the information provided in Figure 23.4 below to answer the question(s) that follow. Figure 23.4
-Refer to Figure 23.4. If income is Y₁, aggregate consumption is the smallest when the aggregate consumption function is

Question

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.

Figure 23.4
-Refer to Figure 23.4. If income is Y₁, aggregate consumption is the smallest when the aggregate consumption function is

Quizplus · Accepted Answer

According to the figure, the aggregate consumption function intersects the Y axis at C₁, which means that this is the level of consumption when there is no income. Therefore, when income is at Y₁, aggregate consumption would be the smallest at the point where the aggregate consumption function intersects the Y axis, which is C₁.

Refer to the Information Provided in Figure 23