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The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future disposable

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The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future disposable income to increase. Use the graph to show an increase in consumption expenditures.

What is the new level of aggregate autonomous consumer spending?

$1000

$4000

$2000

$3000

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10,000 9,000 8,000 $7,000 000 Aggregate Consumption Function Consumer Spending 000 1,000 3,000 2,000 1,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Disposable Income

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