The graph shows the AD line and the 45° line. The value of AD at zero income, ₹100 crore, is An aggregate demand line AD = C + I that starts at ₹100 crore on the vertical axis, and a dashed 45° line. They meet at E, where income and aggregate demand are both ₹400 crore.

Income Determination & the Multiplier · Question 9 of 58

The graph shows the AD line and the 45° line.

Question 9

MediumOriginal question

The graph shows the AD line and the 45° line. The value of AD at zero income, ₹100 crore, is

An aggregate demand line AD = C + I that starts at ₹100 crore on the vertical axis, and a dashed 45° line. They meet at E, where income and aggregate demand are both ₹400 crore.

equilibrium incomeCorrect answerYour answertotal savingCorrect answerYour answerautonomous consumption plus investmentCorrect answerYour answerthe MPCCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

At Y = 0, AD = c̄ + Ī: spending that does not depend on income.

Concept: Intercept of AD
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium: AD equals output

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The graph shows the AD line and the 45° line.

Question 9

Explanation