Figure 9-3
-According to Figure 9-3,at an income level of Y₁

Name: Figure 9-3 -According to Figure 9-3,at an income level of Y₁
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Question

Figure 9-3 
-According to Figure 9-3,at an income level of Y₁

Quizplus · Accepted Answer

At an income level of Y₁, if the economy is dissaving, it means that consumption exceeds income, which is represented by a negative saving amount. The statement that the economy dissaves an amount equal to BD indicates that the distance BD on the graph represents the amount by which consumption exceeds income, thus indicating dissaving.

Figure 9-3 -According to Figure 9-3,at an Income Level of Y₁