Question

In an economy, break-even point and equilibrium point may lie at the same level of income, if ex-ante investments are …………………
(Fill up the blank with correct answer)

Answer 1

Answer:

In an economy, break-even point and equilibrium point may lie at the same level of income, if ex-ante investments Zero.  

The equilibrium GDP is realized only if the ante (planned) savings were equal to the ante (planned) investment.

The Ex-ante investments are described as the planned investments wherein the planner plans to invest into at different income levels in the economy.  

Answer 2

Answer:  

'In an economy, 'break-even point' and 'equilibrium point' may lie at the 'same level of income', if 'ex-ante investments' are Zero. '

Explanation:  

• Equilibrium is obtained in an economy, when demand and supply forces exactly balance one another and values of the external influences and variables do not change.
• The break-even point, on the other hand, is that balance where the costs equal the revenue generated, and there is no presence of gain or loss.

These two points only lie at one specific instance of income, where the ex-ante investments made is zero.