Refer to the Information Provided in Figure 8

question 52

Multiple Choice

Refer to the information provided in Figure 8.5 below to answer the questions that follow. Figure 8.5
-Refer to Figure 8.5. If aggregate consumption is the only expenditure in this society, at an income level of $800 billion

• A) saving is zero.
• B) consumption equals income.
• C) the economy is in equilibrium.
• D) all of the above

---

Definitions:

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Coins

Pieces of metal, authorized by a government as money, stamped with designs and denominations.

Specialized Labor

Workers with specific skills and training focused on a particular job or industry, enhancing efficiency and productivity.

Monetary Exchange

The process of trading different forms of money, currencies, or other financial instruments, typically reflecting the value of goods, services, or financial assets in financial transactions.