At the equilibrium level of income, which is true?

Consumption = incomeCorrect answerYour answerPlanned saving = planned investment and AD = outputCorrect answerYour answerSaving = 0Correct answerYour answerInvestment = consumptionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Both equilibrium conditions hold together.
C = Y and S = 0 describe the break-even point, not equilibrium.

Concept: Equilibrium conditions
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFinding equilibrium income

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Ten questions from Income Determination & the Multiplier, at your own pace.

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Ten questions from Income Determination & the Multiplier, at your own pace.

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At the equilibrium level of income, which is true?

Explanation