-How Much Is Autonomous Consumption When Disposable Income Is $1200

question 220

Short Answer

$$\begin{array}{l}\begin{array} { cc } \text { Disposable Income}&{ Consumption }\\0 & \$ 300 \text { billion } \\\$ 400 \text { billion } & 600 \text { billion } \\800 \text { billion } & 900 \text { billion } \\1200 \text { billion } & 1200 \text { billion } \\1600 \text { billion } & 1500 \text { billion }\end{array}\end{array}$$
-How much is autonomous consumption when disposable income is $1200 billion?

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Definitions:

Contra Accounts

Accounts used in accounting to reduce the value of a related account to derive its net balance; examples include accumulated depreciation.

Normal Balances

The side of an account (debit or credit) where increases to the account are recorded; assets and expenses typically have debit normal balances, while liabilities, equity, and revenue have credit normal balances.

Perpetual Inventory System

An inventory tracking system that updates item records in real-time as transactions occur, providing a constant current inventory level.

Perpetual Inventory System

An inventory accounting system that records inventory purchases and sales in real-time.