The 45-degree line identifies
A) all possible equilibrium points.
B) All of these
C) all points of spending balance.
D) points where people consume according to the consumption function.
E) points where real GDP equals income.
Correct Answer:
Verified
Q119: The components that make up aggregate expenditures
Q120: The sum of the four spending components
Q121: If the marginal propensity to consume increases,
A)firms
Q122: According to the spending balance model, a
Q123: Suppose the expenditure line is given by
Q125: If real GDP is less than spending,
Q126: If there is an increase in government
Q127: Answer the questions below: Q128: If spending is greater than output, a Q129: Answer the questions below:
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