Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is
A) above zero.
B) between $0 and $150 billion.
C) equal to $200 billion.
D) above $200 billion.

Question

Refer to the information provided in Figure 8.3 below to answer the questions that follow.  Figure 8.3
-Refer to Figure 8.3. For this society, aggregate saving is positive if aggregate income is
A) above zero. 
B) between $0 and $150 billion. 
C) equal to $200 billion. 
D) above $200 billion.

Quizplus · Accepted Answer

Aggregate saving is positive only when aggregate income exceeds aggregate consumption. From the graph, we can see that aggregate consumption is $200 billion when aggregate income is $200 billion. Therefore, aggregate saving is positive only when aggregate income is above $200 billion.

Refer to the Information Provided in Figure 8