The aggregate expenditure curve shows
A. how consumption changes in response to a change in disposable income.
B. how planned aggregate expenditure and real GDP are related.
C. a negative relationship between the price level and real GDP.
D. Both answers B and C are correct.
Answer:B
The aggregate expenditure curve shows
A. how consumption changes in response to a change in disposable income. B. how planned aggregate expenditure and real GDP are related. C. a negative relationship between the price level and real GDP. D. Both answers B and C are correct.