-The table above gives data for the nation of Mosh. If we graphed these data, we would see that when GDP equals
A) $4 trillion, the AE curve intersects the 45° line.
B) $6 trillion, the AE curve is below the 45° line.
C) $9 trillion, the AE curve intersects the 45° line.
D) $10 trillion, the 45° line is above the AE curve.
E) $10 trillion, the AE curve intersects the 45° line.

Question

-The table above gives data for the nation of Mosh. If we graphed these data, we would see that when GDP equals
A) $4 trillion, the AE curve intersects the 45° line. 
B) $6 trillion, the AE curve is below the 45° line. 
C) $9 trillion, the AE curve intersects the 45° line. 
D) $10 trillion, the 45° line is above the AE curve. 
E) $10 trillion, the AE curve intersects the 45° line.

Quizplus · Accepted Answer

The AE (Aggregate Expenditure) curve intersects the 45° line at the equilibrium level of GDP. This occurs when planned aggregate expenditure equals actual GDP, which is typically given in the problem or can be deduced from the data. In this case, it is stated that at $9 trillion, the AE curve intersects the 45° line, indicating equilibrium.

-The Table Above Gives Data for the Nation of Mosh