FIGURE 21-3 Refer to Figure 21-3

question 64

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.Assuming AE₀ is the prevailing aggregate expenditure function,at a level of national income equal to Y₃ we can state that

• A)consumption is greater than desired aggregate expenditure.
• B)consumption is less than desired aggregate expenditure.
• C)desired aggregate expenditure is greater than output.
• D)desired aggregate expenditure is less than output.
• E)desired saving is less than zero.

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