Which of the Following Correctly Describes the Meaning of the Aggregate

Multiple Choice

Which of the following correctly describes the meaning of the aggregate expenditure (AE) function?

A) The AE function relates the level of desired aggregate expenditure to the level of actual national income.
B) The AE function relates the level of desired consumption expenditure to desired aggregate expenditure.
C) The AE function relates the level of desired investment expenditure to desired aggregate expenditure.
D) The AE function relates the level of nominal GDP to the level of real GDP.
E) The AE function relates the level of aggregate demand to the price level.