State with reasons whether you agree or disagree with the following statements. 4) At break-even point, consumption (C) is equal to income (Y).

State with reasons whether you agree or disagree with the following statements.

4) At break-even point, consumption (C) is equal to income (Y).

Answer: Break Even point is a point where consumption exactly equals income and correspondingly, savings are zero. Graphically, it is determined at the intersection of the income line or the 45 degrees line and the curve. Algebraically, breakeven is achieved when Y = C

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