Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / The aggregate expenditure curve

The aggregate expenditure curve

Economics

The aggregate expenditure curve...

a.Slopes down.

b.Is a 45-degree line.

c.Is the mirror image of aggregate demand.

d.Has a slope between 0 and 1.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The answer is (d) Has a slope between 0 and 1

The slope of the aggregate expenditures curve = change in aggregate expenditures / change in real GDP

Since change in real GDP > change in aggregate expenditures due to the multiplier effect, the slope will be less than 1.

All other options are incorrect as they make wrong claims about the aggregate expenditure curve

Related Questions