Solved

What Is Illustrated by the Distance Between the Aggregate Expenditure

Question 114

Multiple Choice

What is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?

A) saving
B) unplanned inventory change
C) planned investment
D) marginal propensity to consume

Related Questions

Q109: How will an increase in the price

Q110: Suppose the spending multiplier is greater than

Q111: Suppose the marginal propensity to save is

Q112: Other things constant, how would a smaller

Q113: Other things constant, how would a smaller

Q115: Suppose households save $30 billion more at

Q116: Suppose the price level increases.How will the

Q117: Suppose current real GDP is greater than

Q118: At the equilibrium level of real GDP,

Q119: Other things constant, how would a smaller