--%>

Consumption curve

Illustrate a point on consumption curve at which APC = 1.

Answer:

APC = C/Y = 1 is possible when C = Y, that is, Consumption is equivalent to Income.

2048_APC.jpg

   Related Questions in Macroeconomics

  • Q : What is Time Bound-Banking Industry

    Time Bound: It is essential for bank to lay goals and also have the deadline for the completion of each goal. To be a market leader bank needs to work hard. They need to dedicate more time and resources to attain required success. A time associated wi

  • Q : Positional Goods problem Can someone

    Can someone help me in finding out the right answer from the given options. In accord with the theories of Thorstein Veblen, the positional goods from which the owner or user of the good derives the jollies mainly since of the power, class and status signaled by the p

  • Q : Backward shifting of incidence tax When

    When firms bear the legal incidence of a tax, this is backward shifted while: (1) firms burden consumers by raising their prices. (2) the tax burden is borne by workers in the form of lower wages. (3) resource suppliers seek higher factor payments to

  • Q : Equilibrium of a market How can

    How can Equilibrium of a market be exist?

  • Q : Define revenue receipts Define revenue

    Define revenue receipts. Write the groups in which they are categorized. Answer: Any receipts that do not either make a liability or lead to reduction in assets is

  • Q : Explain Shut Down Price Explain the

    Explain the term Shut Down Price? Illustrate it.

  • Q : Define Macro Economics Macro Economics

    Macro Economics: Macro economics studies the economy as an entire.

  • Q : Normative goals of macroeconomic

    Commonly agreed-upon normative goals of macroeconomic policy do not include: (w) high employment. (x) price-level stability. (y) redistributing wealth through the rich to the poor. (z) economic growth. Can someone

  • Q : Problem on superior or luxury goods The

    The Income effects will be most strongly positive for: (1) Normal goods. (2) Necessities. (3) Superior or luxury goods. (4) Substitutes and much negative for the complements. Find out the right answer from the above options.

  • Q : Changing value of multiplier ‘Over the

    ‘Over the precedent 30 years, and particularly as our entry into the EU, imports (and exports) as a proportion of GDP have increases considerably in the UK. What influence has this had on the value of multiplier in the UK?’