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3. Consumption function and non-income determinants The following graphs show an economy's initial position at point A along its consumption function ( CF ). Suppose tensions in the Middle East lead to a rapid increase in the price of oil, which raises the general price level. Adjust the following graph by either shifting the consumption function curve or the initial point on the consumption curve (A) to illustrate the impact of a rise in the price level. ? REAL CONSUMPTION SPENDING (Billions of dollars) O Consumption Function Consumption Function A REAL DISPOSABLE INCOME (Billions of dollars) Now suppose that disposable income suddenly and unexpectedly decreases. Adjust the following graph by either shifting the consumption function curve or the initial point on the consumption function curve (A) to illustrate the impact of a fall in disposable income. REAL CONSUMER SPENDING (Billions of dollars) O Consumption Function Consumption Function A REAL DISPOSABLE INCOME (Billions of dollars)