Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures,and so we must be ________ the equilibrium level of income.
A)less,below
B)less,above
C)greater,below
D)greater,above

Question

Quizplus · Accepted Answer

When the vertical distance to the 45-degree line is less than the distance to the Ep line, planned expenditures are greater than income, indicating that we are below the equilibrium level of income.

Income on the Horizontal Axis at Which the Vertical Distance