-In the figure above, the induced consumption when real GDP is $12 trillion is
A) $8 trillion.
B) $12 trillion.
C) zero.
D) $2 trillion.

Name: -In the figure above, the induced consumption when real GDP is $12 trillion is A) $8 trillion. B) $12 trillion. C) zero. D) $2 trillion.
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Question

-In the figure above, the induced consumption when real GDP is $12 trillion is
A) $8 trillion. 
B) $12 trillion. 
C) zero. 
D) $2 trillion.

Quizplus · Accepted Answer

Induced consumption is the portion of consumption that changes with changes in income. If real GDP is $12 trillion and the consumption function shows $8 trillion at that level, then $8 trillion is the induced consumption.

-In the Figure Above, the Induced Consumption When Real GDP