Use the figure below to answer the following questions.
Figure 11.3.1
The economy shown in the graph does not engage in international trade and has no government.Planned aggregate expenditure equals the sum of consumption expenditure C) and investment I).
-Refer to Figure 11.3.1.The slope of the AE curve is
A)1.33.
B)0.25.
C)0.67.
D)0.75.
E)0.50.

Question

Use the figure below to answer the following questions.
  Figure 11.3.1
The economy shown in the graph does not engage in international trade and has no government.Planned aggregate expenditure equals the sum of consumption expenditure C) and investment I).
-Refer to Figure 11.3.1.The slope of the AE curve is
A)1.33. 
B)0.25. 
C)0.67. 
D)0.75. 
E)0.50.

Quizplus · Accepted Answer

The slope of the AE curve is equal to the change in planned aggregate expenditure (PAE) divided by the change in real GDP. From the graph, a $200 billion increase in PAE leads to a $150 billion increase in real GDP, giving a slope of 0.75.

Use the Figure Below to Answer the Following Questions