Figure 12-1
-Refer to Figure 12-1.If the economy is in equilibrium,it is at a level of aggregate expenditure given by point
A)J.
B)K.
C)L.
D)Points J,K and L all represent equilibrium.

Question

Figure 12-1 
-Refer to Figure 12-1.If the economy is in equilibrium,it is at a level of aggregate expenditure given by point
A)J. 
B)K. 
C)L. 
D)Points J,K and L all represent equilibrium.

Quizplus · Accepted Answer

In an economy, equilibrium is achieved when aggregate expenditure equals total output, which is represented by the point where the aggregate expenditure curve intersects the 45-degree line that represents all points where aggregate expenditure equals output. Without seeing Figure 12-1, the correct answer cannot be determined definitively. However, typically, equilibrium is represented by a single point of intersection between these two lines, not multiple points. Therefore, assuming the question implies a standard model, only one of the given points (J, K, or L) would represent this equilibrium. Since the correct answer cannot be chosen without the figure, a standard interpretation would suggest that there is a specific point among the options given that represents equilibrium, but it cannot be identified as B without seeing the figure.

Figure 12-1 -Refer to Figure 12-1.If the Economy Is in Equilibrium,it Is