Refer to the information provided in Table 8.7 below to answer the questions that follow.
Table 8.7
-Refer to Table 8.7. At an aggregate output level of $800 billion, aggregate saving
A) equals -$50 billion.
B) equals $0.
C) equals $50 billion.
D) cannot be determined from this information.

Question

Refer to the information provided in Table 8.7 below to answer the questions that follow.
Table 8.7 
-Refer to Table 8.7. At an aggregate output level of $800 billion, aggregate saving
A) equals -$50 billion. 
B) equals $0. 
C) equals $50 billion. 
D) cannot be determined from this information.

Quizplus · Accepted Answer

At an aggregate output level of $800 billion, aggregate saving is $50 billion. This is because when output (Y) is $800 billion, disposable income (DI) is $750 billion. From the table, we see that at DI of $750 billion, consumption is $700 billion. Therefore, saving (S) is $50 billion ($750 billion - $700 billion).

Refer to the Information Provided in Table 8