On the aggregate expenditure diagram, induced expenditure is and autonomous expenditure is a

(1) Induced expenditure is that part of aggregate expenditure which depends on the income (output) level. It measures the change in aggregate expenditure due to change in income level. It means induced expenditure is a slope of aggregate expenditure line.

Autonomous expenditure is that part of aggregate expenditure which does not depends on the income (output). It is constant pat of aggregate expenditure. It is the intercept of aggregate expenditure line.

Answer: Option (D)

i.e., On the aggregate expenditure diagram, induced expenditure is the slope and autonomous expenditure is the intercept.

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(2) Aggregate expenditure curve slopes upward. It has a slope between 0 and 1.

Answer: Option (B)

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(3) Potential output is the maximum sustainable level of real GDP for a given level of inputs. It is the maximum amount of real GDP economy can produce with the help of given level of inputs.

Answer: Option (B)