Refer to the information provided in Figure 8.12 below to answer the questions that follow. Figure 8.12
-Refer to Figure 8.12. [600 + 0.4Y] represents the
A) aggregate expenditures function.
B) saving function.
C) equilibrium function.
D) multiplier function.

Question

Refer to the information provided in Figure 8.12 below to answer the questions that follow.  Figure 8.12
-Refer to Figure 8.12. [600 + 0.4Y] represents the
A) aggregate expenditures function. 
B) saving function. 
C) equilibrium function. 
D) multiplier function.

Quizplus · Accepted Answer

The equation [600 + 0.4Y] represents the aggregate expenditures function, which shows the relationship between the level of output (Y) and the total spending in the economy.

Refer to the Information Provided in Figure 8