-Refer to the above figure. Point B
A) equals autonomous consumption.
B) equals autonomous consumption plus planned investment plus autonomous government spending plus autonomous net exports.
C) has no special significance.
D) equals government expenditures.

Question

-Refer to the above figure. Point B
A) equals autonomous consumption. 
B) equals autonomous consumption plus planned investment plus autonomous government spending plus autonomous net exports. 
C) has no special significance. 
D) equals government expenditures.

Quizplus · Accepted Answer

Point B represents the level of aggregate expenditure that includes autonomous consumption, planned investment, autonomous government spending, and autonomous net exports. This point on the aggregate expenditure model reflects the total planned spending in the economy at a given level of income, excluding the impact of induced expenditures.

-Refer to the Above Figure. Point B