Tackle the Test: Free-Response Questions

  1. Question

    Use the aggregate consumption function provided to answer the following questions:

    image
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    171

    Rubric for FRQ 1 (7 points)

    1 point: 0.8

    1 point: $4.7 trillion

    1 point: Vertical axis labeled “Aggregate consumer spending” and horizontal axis labeled “Aggregate current disposable income”

    1 point: Vertical intercept of $1.5 trillion

    1 point: Upward-sloping aggregate consumption function

    1 point: 0.8

    1 point: Aggregate consumption function shifts downward

    image
    Aggregate current disposable income

  2. Question

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