The Aggregate Expenditure Line,along with the 45-Degree Line,determines Equilibrium

Multiple Choice

The aggregate expenditure line,along with the 45-degree line,determines equilibrium.This model is based on the assumption that

A) production is constant
B) production is constant and at the full employment level of GDP
C) producers are ready to supply whatever amount of output is demanded at the existing price level
D) producers will supply more at higher prices than they will at lower prices
E) producers will supply more at lower prices than they will at higher prices