-Refer to the above figure. Line EBD is called
A) the 45-degree line.
B) the consumption function.
C) the saving function.
D) aggregate demand.

Question

-Refer to the above figure. Line EBD is called
A) the 45-degree line. 
B) the consumption function. 
C) the saving function. 
D) aggregate demand.

Quizplus · Accepted Answer

The 45-degree line in economics typically represents a situation where the value of the goods and services produced (output) equals the total value of goods and services demanded (expenditure). It's a reference line used in various economic models, including those analyzing consumption and saving functions.

-Refer to the Above Figure