Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. Figure 23.3
-Refer to Figure 23.3. For this society, aggregate saving is positive if aggregate income is
A) above zero.
B) between $0 and $150 billion.
C) equal to $200 billion.
D) above $200 billion.

Question

Refer to the information provided in Figure 23.3 below to answer the question(s) that follow.  Figure 23.3
-Refer to Figure 23.3. For this society, aggregate saving is positive if aggregate income is
A) above zero. 
B) between $0 and $150 billion. 
C) equal to $200 billion. 
D) above $200 billion.

Quizplus · Accepted Answer

In Figure 23.3, aggregate saving is represented by the vertical distance between the 45-degree line and the aggregate expenditure line. The aggregate expenditure line crosses the 45-degree line at $200 billion of aggregate income, indicating that at this level of income, aggregate saving is zero. Therefore, aggregate saving is positive only if aggregate income is above $200 billion.

Refer to the Information Provided in Figure 23