FIGURE 21-3 Refer to Figure 21-3

question 42

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.What does each point along the 45-degree line represent?

• A)combinations of desired aggregate expenditure and actual national income where consumption expenditure equals saving
• B)the equilibrium condition that desired aggregate expenditure equals actual national income
• C)levels of actual national income where desired AE is equal to the sum of desired consumption and desired investment
• D)levels of actual national income that occur when autonomous expenditure is increasing at a constant (linear)rate
• E)levels of actual national income where desired saving is equal to zero

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Definitions:

Grinding Mill

A machine used for breaking down materials by friction, crushing, or cutting.

Transportation Costs

These are expenses incurred in moving goods or materials from one location to another, including fuel, labor, and maintenance costs.

Fixed Cost

Expenses that do not change with the level of goods or services produced over a short period, such as rent or salaries.

Attractive Location

A site or place deemed desirable for setting up businesses or operations due to factors such as low costs, strategic position, or access to resources.