One reason the aggregate expenditure curve slopes upward is because_________ increases when real GDP increases.
A) consumption expenditure
B) government expenditure on goods and services
C) investment
D) exports

Question

Quizplus · Accepted Answer

Consumption expenditure increases as real GDP increases due to the marginal propensity to consume, which leads to a positive relationship between income and consumption.

One Reason the Aggregate Expenditure Curve Slopes Upward Is Because_________