The graph of the aggregate expenditure curve has_________ on the y-axis and _________on the
X- axis.
A) aggregate planned expenditure; real GDP
B) aggregate actual expenditure; real GDP
C) household expenditures; real GDP
D) real GDP; aggregate planned expenditure

Question

Quizplus · Accepted Answer

The aggregate expenditure curve shows the relationship between the level of real GDP and the level of aggregate planned expenditure. Therefore, the y-axis represents aggregate planned expenditure while the x-axis represents real GDP.

The Graph of the Aggregate Expenditure Curve Has_________ on the Y-Axis