In a Graph with Disposable Income on the Horizontal Axis

question 72

Multiple Choice

In a graph with disposable income on the horizontal axis and consumption on the vertical axis,the intersection of the 45-degree line with the

• A)Consumption function indicates zero saving.
• B)Aggregate spending curve indicates full employment.
• C)Full-employment output indicates equilibrium (macro).
• D)Aggregate demand curve indicates equilibrium.

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Definitions:

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