The aggregate expenditure curve shows the relationship between aggregate planned expenditure and
A)disposable income.
B)real GDP.
C)the interest rate.
D)consumption expenditure.
E)the price level.

Question

Quizplus · Accepted Answer

The aggregate expenditure curve shows the relationship between aggregate planned expenditure and real GDP. This means that as real GDP increases, aggregate planned expenditure also increases, and vice versa. The curve is derived from the components of GDP, including consumption expenditure, investment, government spending, and net exports.

The Aggregate Expenditure Curve Shows the Relationship Between Aggregate Planned