The AE curve illustrates the relationship between
A) the quantity of real GDP demanded and the price level.
B) the interest rate and aggregate planned expenditure.
C) real GDP and the interest rate.
D) aggregate planned expenditure and real GDP.
E) real GDP and actual expenditure.

Question

Quizplus · Accepted Answer

The AE curve, or Aggregate Expenditure curve, illustrates the relationship between aggregate planned expenditure and real GDP, showing how much expenditure is planned at different levels of real GDP.

The AE Curve Illustrates the Relationship Between