Consider the aggregate expenditure line.What do the graph's horizontal axis and the vertical axis represent?
A) real GDP on the horizontal axis, and aggregate expenditure on the vertical axis
B) aggregate expenditure on the horizontal axis, and real GDP on the vertical axis
C) consumption on the horizontal axis, and aggregate expenditure on the vertical axis
D) aggregate expenditure on the horizontal axis, and consumption on the vertical axis

Question

Consider the aggregate expenditure line.What do the graph's horizontal axis and the vertical axis represent?  
A) real GDP on the horizontal axis, and aggregate expenditure on the vertical axis 
B) aggregate expenditure on the horizontal axis, and real GDP on the vertical axis 
C) consumption on the horizontal axis, and aggregate expenditure on the vertical axis 
D) aggregate expenditure on the horizontal axis, and consumption on the vertical axis

Quizplus · Accepted Answer

The aggregate expenditure line graph typically plots real GDP on the horizontal axis and aggregate expenditure on the vertical axis to show the relationship between total spending and output in an economy.

Consider the Aggregate Expenditure Line