Assume that the level of autonomous consumption in an economy equals 600, the level of planned investment = 500.What is the level of consumption when the level of income equals 3,200?

To answer this question, we need to know the marginal propensity to consume (MPC). The MPC is the increase in consumer spending due to an increase in income. Without this information, we cannot calculate the level of consumption when the level of income equals 3,200.

However, if we assume that the entire income is consumed, then the level of consumption would be the sum of autonomous consumption, planned investment, and the income.

So, Consumption = Autonomous consumption + Planned investment + Income = 600 (Autonomous consumption) + 500 (Planned investment) + 3,200 (Income) = 4,300

But please note that this is an oversimplification. In reality, a portion of the income would be saved and not consumed. The exact portion would depend on the marginal propensity to consume.

To answer this question, we need to understand the concept of autonomous consumption and how it relates to income. Autonomous consumption is the level of consumption that occurs when income is zero. It's the amount of consumption that takes place even if a household has no income.

In this case, the level of autonomous consumption is given as 600. This means that even if income is zero, consumption will be 600.

However, consumption also increases as income increases. This is known as induced consumption. The relationship between income and consumption is usually given by the consumption function:

C = Co + MPC * Y

where: C = total consumption Co = autonomous consumption MPC = marginal propensity to consume (the increase in consumption due to an increase in income) Y = income

In this question, we are not given the value of the MPC, so we cannot calculate the exact level of consumption when income equals 3,200. However, we know that consumption will be at least the level of autonomous consumption (600) plus some amount due to the increase in income.

If we had the value of the MPC, we could substitute it into the equation along with the values of Co and Y to find the total consumption.

To answer this question, we need to know the marginal propensity to consume (MPC). The MPC is the increase in consumer spending due to an increase in income. Without this information, we cannot calculate the level of consumption when the level of income equals 3,200.

However, if we assume that the MPC is 0.8 (which is a common assumption), we can calculate the level of consumption as follows:

1. Calculate the amount of income that is spent: MPC * income = 0.8 * 3,200 = 2,560
2. Add autonomous consumption: 2,560 + 600 = 3,160

So, if the MPC is 0.8, the level of consumption when the level of income equals 3,200 would be 3,160.

To answer this question, we need to know the marginal propensity to consume (MPC). The MPC is the increase in consumer spending due to an increase in income. Without this information, we cannot calculate the level of consumption when the level of income equals 3,200.

However, if we assume that the entire income is consumed, then the level of consumption would be the level of income, which is 3,200. But this is a simplification and in reality, a part of the income would be saved.

If you provide the MPC, we can give a more accurate answer.