Equilibrium expenditure occurs where the aggregate expenditure curve crosses the
A) 45-degree line.
B) horizontal axis.
C) vertical axis.
D) consumption function.

Name: Equilibrium expenditure occurs where the aggregate expenditure curve crosses the A) 45-degree line. B) horizontal axis. C) vertical axis. D) consumption function.
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Question

Quizplus · Accepted Answer

The 45-degree line represents all points where aggregate expenditure equals total output or income, indicating equilibrium expenditure.

Equilibrium Expenditure Occurs Where the Aggregate Expenditure Curve Crosses the