The question below is based on the following equations, which refer to a model of a closed economy without a government sector:A = C + IC = 600 + 0,75YI = 200Which of the following statements is/are correct?a) When income is zero, private aggregate spending is 800.b) The slope of the C curve is 0,75.c) The slope of the A curve is 0,75.a.All the statements are correct.b.a and bc.a and cd.b and ce.c

To answer this question, we need to understand the given equations and the terms used in the options.

A = C + I is the aggregate demand equation where A is aggregate demand, C is consumption and I is investment.

C = 600 + 0.75Y is the consumption function where Y is income.

I = 200 is the investment, which is assumed to be autonomous, i.e., it does not depend on income.

a) When income is zero, private aggregate spending is 800. To verify this, we substitute Y = 0 in the consumption function, we get C = 600. Since I = 200, the total private aggregate spending A = C + I = 600 + 200 = 800. So, statement a is correct.

b) The slope of the C curve is 0.75. The slope of the consumption function C = 600 + 0.75Y is indeed 0.75. This is the marginal propensity to consume, i.e., the change in consumption for a unit change in income. So, statement b is correct.

c) The slope of the A curve is 0.75. The aggregate demand function is A = C + I. Substituting for C and I, we get A = 600 + 0.75Y + 200. The slope of this function is also 0.75. So, statement c is correct.

Therefore, all the statements a, b, and c are correct. The answer is a. All the statements are correct.