Savings (thousand)Consumption (thousands)6Panel AConsumptionMove this point along CCY=C+SO Macmillan LearningAdjust the interactive graph in order to observe therelationship between income, consumption, and savingchanges as income increases. Use the graph to help youanswer the following questions.2 3 4 5 6Panel Bincome (thousands)Savings4 5 6SIncome (thousands)a. At an income of 4000, how much is consumed?How much is saved?Consumption = $-500Savings = $3500O Consumption = $0Savings $4000=Consumption = $3500Savings = $-500O Consumption =$4000Savings = $0

The national income is the summation of a country's final goods and services. It is a yardstick…

a. At an income of 4000, how much is consumed? How much is saved? O Consumption = $ -500 Savings = $3500 O Consumption = $ 0 Savings = $4000 Consumption = $ 3500 Savings = $-500 Consumption $4000 Savings = $0 =

a. At an income of 4000, how much is consumed? How much is saved? O Consumption = $ -500 Savings = $3500 O Consumption = $ 0 Savings = $4000 Consumption = $ 3500 Savings = $-500 Consumption $4000 Savings = $0 =

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Concept explainers

Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.

Question

Savings (thousand)
Consumption (thousands)
6
Panel A
Consumption
Move this point along C
C
Y=C+S
O Macmillan Learning
Adjust the interactive graph in order to observe the
relationship between income, consumption, and saving
changes as income increases. Use the graph to help you
answer the following questions.
2 3 4 5 6
Panel Bincome (thousands)
Savings
4 5 6
S
Income (thousands)
a. At an income of 4000, how much is consumed?
How much is saved?
Consumption = $
-500
Savings = $3500
O Consumption = $0
Savings $4000
=
Consumption = $
3500
Savings = $-500
O Consumption =
$4000
Savings = $0

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