Tackle the Test: Free-Response Questions

  1. Question

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

    image
    WA4W1ouYEcZeXjCkKARftPGGWpPkAcju7cRfk4FFpByYszjynKK/tPgxzoTz8uN1GgLmurEq+pGWDSSGRPdbFQkgdd3UziaroWAmrGP+XxoH3FWAeFKLx0oQDsf2SWU3sZnrlY6SPWnWYaddTYqH+krldULj99gjdVXFEGrJMZyPtBtFs7u7U7ypOayUf8vSw98nzeaSP+QUEiVvcouBP7UHguV4cxZ+7m+z+IJNtMi+MudY65XBTMY2Vj3ZVVJBWRSbN9bDGs22d0pCJ78fyjQDnPeYXXMxKGfaFmJlOtvCnM3T/SIVVUgVIN7cvvRt/749XyVtiFVECYuOTtqRJIko5/tTtas57iEgPm4sp8mug0dbC9x35h1S8PJz6boDzrMcHpucyy9u7aKn9+Gt+i/fa6RWJ/ukzwY+AlxYs86cYjbq++/3hBXAiLFTmw13hSxpiAOj2zcXPiW2Z42bixWb1Oxmr7z9CWt0TPA5gQEUDAZX0GzFA0G0cnA4tRKlJYhv2qsWZJFoAJJvF9dvEzzh7yDbTyb6z4DSFhJs/fFZwTYZ7G2Bnn5O1pvuukoUIX05pmqmrqrwwalDX9zbElMl2k4hAx1sMEtHgv/FzL6RozfuotEdXc7fSXqSv7hke5ag97wPghSLMLa+1oAJN0rPJs/TxxkE46mpqYFLA3qHckODm4dZ84fXJRftAhzuDNHQ2VKF/w2NTCrA8TmyQ3Y6eyajtUvotxTKEJtv6vZAs1IiVtIgkrYapT+uocKOLZYeQ7PRpx2+ZSUMWIdNTMOKb50nAvbZg1v7ryapaH095nJmOktRwIvo+LTZl7jPcUAGV8Jbgd1Y5p63LQ/LHCf877l0NX0/GFF76UsooInXJNrd8sNtUvIzlAstBUdq4C99mZtUOPayvi+OU8H+InYPSdjicMOROHJieAsnD4NZCYk4rRlqSK+oKlq7N19f2Hf27WbSiFUXj52eu4DDRa8sAZ6WlrvgJZF8fN7kq6OmVH0IUMRansoo2LFT3pz3L7Jc8G7XiJCBEvD++LKptnXY718H4b9skEgQJu8HlMaeX5F5huOOpx50Z//TrXR9xE738W8G+ouaqLFfQUU320tPJegqDrwwFAQ6UDjP/jru0oD4LDMI3nACTFm1p586P58xeLEr1lfpTnglZhR9N60oaoe5koiTqVa4RGKsZtq4iIQydV9ns1HSvaCJaC/y

    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

    Mc9ScPfLHmjlQKCITJSy43rfnfALi6iNGhkVnnQp2+t7bO0QTPNa0jd4ODmLuBGnzG27jvM8Bi1RjOh2/7NQuZwwkgZWOp3jS3JwgeJHpDagm9NkvBu2Yk9ce9LnUUkgqSSZ4R5P6NE8QmhPz1h2v34nnHIiplP/xS8iNh4zzwjBkoR7J8cD/FoeeD66TyfT8OvaJbQ8kuWjOTL5Tl0XyK58vlGMpn2nVPR+sLXrK7XTdQNzhyHAyijEtAiYmRnahWsaO83ucZJIj2v/X7CqAGFp5kQZbp5CgFMUHxA4B7rXSmIQydpBGPBdYGF+QRDusWa8lw==