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

Question

Quizplus · Accepted Answer

The aggregate expenditure curve typically plots aggregate planned expenditure on the y-axis and real GDP on the x-axis. This shows the relationship between total spending in the economy and the level of production or income.

The Graph of the Aggregate Expenditure Curve Has ________ on the Y-Axis