The aggregate expenditure model focuses on the relationship between ________ and ________ in the short run,assuming ________ is constant.
A)total production; total income; real GDP
B)total spending; real GDP; total income
C)total spending; real GDP; the price level
D)total income; real GDP; the price level

Question

Quizplus · Accepted Answer

The aggregate expenditure model focuses on the relationship between total spending and real GDP in the short run, assuming the price level is constant. This model is used to analyze the components of total spending and how they interact with output and income levels in the economy.

The Aggregate Expenditure Model Focuses on the Relationship Between ________