Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Figure 23.9
-Refer to Figure 23.9. $200 million is
A) the break even income.
B) the equilibrium income.
C) where saving equals consumption.
D) where saving equals aggregate expenditures.

Question

Refer to the information provided in Figure 23.9 below to answer the question(s) that follow.  Figure 23.9
-Refer to Figure 23.9. $200 million is
A) the break even income. 
B) the equilibrium income. 
C) where saving equals consumption. 
D) where saving equals aggregate expenditures.

Quizplus · Accepted Answer

According to the graph, the point where the aggregate expenditures line intersects the 45-degree line is at $200 million. This is the equilibrium income, where aggregate expenditures are equal to output. It is not necessarily the break even income and saving does not necessarily equal consumption or aggregate expenditures at this point.

Refer to the Information Provided in Figure 23