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

Question

Quizplus · Accepted Answer

The consumption expenditure component of aggregate expenditure includes household spending on goods and services, which tends to increase as real GDP increases. As a result, increases in real GDP lead to increases in aggregate expenditure, causing the slope of the aggregate expenditure curve to be upward.

One Reason the Aggregate Expenditure Curve Slopes Upward Is Because