Refer to the information provided in Figure 23.5 below to answer the question(s) that follow. Figure 23.5
-Refer to Figure 23.5. If aggregate consumption is the only expenditure in this society, at an income level of $800 billion
A) saving is zero.
B) consumption equals income.
C) the economy is in equilibrium.
D) all of the above.

Question

Refer to the information provided in Figure 23.5 below to answer the question(s) that follow.  Figure 23.5
-Refer to Figure 23.5. If aggregate consumption is the only expenditure in this society, at an income level of $800 billion
A) saving is zero. 
B) consumption equals income. 
C) the economy is in equilibrium. 
D) all of the above.

Quizplus · Accepted Answer

At an income level of $800 billion, the aggregate consumption line intersects the 45-degree line at point E. This means that at this income level, aggregate consumption is equal to income, and there is no saving. Therefore, the economy is in equilibrium.

Refer to the Information Provided in Figure 23