Along the 45-degree reference line
A) total planned real expenditures = real GDP.
B) total planned real expenditures = planned nominal expenditures.
C) total planned nominal expenditures = consumption.
D) total planned investment spending = planned real expenditures.

Question

Quizplus · Accepted Answer

Along the 45-degree reference line, total planned real expenditures are equal to real GDP. This is because the 45-degree line represents the points where actual output (real GDP) equals planned expenditures.

Along the 45-Degree Reference Line