# Assume a = 150, b = 0.75, I = 200, Yf = 1600. Find the value of consumption at the equilibrium...

## Question:

Assume a = 150, b = 0.75, I = 200, Yf = 1600.

Find the value of consumption at the equilibrium level of output and income.

## Consumption:

The term consumption refers to the fraction of individual income not used for saving and investment purposes. There are two of consumption - autonomous consumption and induced consumption.

## Answer and Explanation: 1

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View this answerThe correct answer is **the value of consumption at the equilibrium level of output and income is 1,200**.

The Consumption function can be written as:

C...

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Chapter 45 / Lesson 2Learn about consumption in economics. Read examples of consumption in economics and find out 4 types of consumption in economics, what affects it, and how it is measured.

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