On the 45 degree-line diagram,the 45 degree line shows points where real aggregate expenditure equals
A)unplanned investment.
B)planned investment.
C)real GDP.
D)nominal GDP.

Question

Quizplus · Accepted Answer

The 45 degree line shows points where real GDP equals aggregate expenditure, which includes both consumption and planned investment. Unplanned investment is not included and nominal GDP is not relevant to the diagram.

On the 45 Degree-Line Diagram,the 45 Degree Line Shows Points