Use the Figure Below to Answer the Following Questions

question 52

Multiple Choice

Use the figure below to answer the following questions.

Figure 27.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 27.1.1. When disposable income is $500 billion, saving is equal to

• A)disposable income.
• B)zero.
• C)$20 billion.
• D)consumption expenditure.
• E)$40 billion.

---

Definitions:

Labor Demand Curve

A graph showing the relationship between the quantity of labor demanded by employers and the wage rate.

Quantity of Labor

The total number of labor hours employed in the production of goods and services over a specific period.