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(Table) the Following Table Shows Data on Consumption at Various

Question 128

Multiple Choice

(Table) The following table shows data on consumption at various levels of income. Investment spending is $500 for all levels of income.  Income  Consumption $0$500$1,000$1,250$2,000$2,000$3,000$2,750$4,000$3,500\begin{array} { r r } \text { Income } & \text { Consumption } \\\$ 0 & \$ 500 \\\$ 1,000 & \$ 1,250 \\\$ 2,000 & \$ 2,000 \\\$ 3,000 & \$ 2,750 \\\$ 4,000 & \$ 3,500\end{array} If there is no government spending or net exports, the equilibrium income level is:


A) $1,000.
B) $2,000.
C) $3,000.
D) $4,000.

Correct Answer:

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