Working with the Aggregate Consumption FunctionComplete the following questions.1. Assume there are four individuals in the macroeconomy. Answer the following questionsCurrentDisposableIncomeConsumerSpending, CaraConsumerConsumerConsumerSpending, Fred Spending, Don Spending, Robin$0$1,050$1,350$1,580$2,1001,0001,2001,5001,8002,4001,5002,0002,500a. Complete the table: Add the consumer spending for the remaining levels of disposableincome 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.

Ans. ) Given the question is related to the aggregate consumption function... The normal consumption…

Answered: Working with the Aggregate Consumption…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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Summarize and illustrate the aggregatedemand curve andthe factors that shift it
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