In the above figure, what is the equilibrium level of real consumption spending?

If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:

a. equals consumption. b. equals disposable income. c. is less than zero. d. is equal to zero. e. is greater than zero.

Answer the following questions:

a. What does GDP measure, and why is it a useful tool for economists, business decision makers, and government policy makers? b. Explain at least two important things GDP does not measure.