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5. Consumption function and non-income determinants The following graphs show an economy's initial position at point A along its consumption function (0). Suppose disposable income

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5. Consumption function and non-income determinants The following graphs show an economy's initial position at point A along its consumption function (0). Suppose disposable income suddenly and unexpectedly decreases. 0n the graph, shift either the consumption curve or the initial point on the consumption function to show the impact of a fall in disposable income. (Note: In the scenario where the curve shifts, only shift the curve and do not adjust the position of the point.) 6) REAL CONSUMPTION (Billions of dollars) REAL DISPOSABLE INCOME (Billions of dollars) Now suppose that there is a stock market crash that wipes out a third of households' net wealth. On the following graph, shift either the consumption curve or the initial point on the consumption function to Show the impact of a decline in households' net wealth. (Note: In the scenario where the curve shifts, only shift the curve and do not adjust the position of the point.) REAL CONSUMPTION (Billions of dollars) REAL DISPOSABLE INCOME (Billions of dollars)

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