The Aggregate Consumption Function Is C = 800 + 0

question 221

Multiple Choice

The aggregate consumption function is C = 800 + 0.8Yd. If income is $2,000 and net taxes are $500, consumption equals

• A) 1,500.
• B) 2,000.
• C) 2,050.
• D) 2,150.

---

Definitions:

Machine-Hours

A unit of measure indicating the total time production machinery is operated, used in calculating manufacturing costs and efficiencies.

Cost of Work

This could refer to the total expenses associated with performing a particular job or task, including labor, materials, and overhead costs.

Overapplied Overhead

A scenario in which the overhead costs assigned surpass the real overhead expenses incurred.

Allocation

The process of assigning costs or resources to various departments, products, or activities based on specific criteria.