Refer to the information provided in Figure 8.10 below to answer the questions that follow. Figure 8.10
-Refer to Figure 8.10. [200 + 0.8Y] represents the
A) MPC.
B) MPS.
C) aggregate expenditures function.
D) aggregate income function.

Question

Refer to the information provided in Figure 8.10 below to answer the questions that follow.  Figure 8.10
-Refer to Figure 8.10. [200 + 0.8Y] represents the
A) MPC. 
B) MPS. 
C) aggregate expenditures function. 
D) aggregate income function.

Quizplus · Accepted Answer

The expression [200 + 0.8Y] represents the aggregate expenditures function, which shows the total amount of spending in the economy at different levels of income. Therefore, option C is the correct choice.

Refer to the Information Provided in Figure 8