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On the Income-Expenditure Diagram, the Economy Reaches Equilibrium When

Question 67

Multiple Choice

On the income-expenditure diagram, the economy reaches equilibrium when


A) the planned expenditure line intersects the 35-degree angle equilibrium condition line.
B) the planned expenditure line intersects the vertical axis.
C) the planned expenditure line intersects the 65-degree angle equilibrium condition line.
D) the planned expenditure line intersects the 45-degree angle equilibrium condition line.

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