Use the table below to answer the following questions.
Table 27.3.1
The following table shows the relationship between aggregate planned
expenditure and real GDP in the hypothetical economy of Econoworld.

-Refer to Table 27.3.1. What is the slope of the AE curve?
A)0.8
B)0.6
C)0.75
D)1
E)1.3

Question

Use the table below to answer the following questions.
Table 27.3.1
The following table shows the relationship between aggregate planned
expenditure and real GDP in the hypothetical economy of Econoworld.
 
-Refer to Table 27.3.1. What is the slope of the AE curve?
A)0.8 
B)0.6 
C)0.75 
D)1 
E)1.3

Quizplus · Accepted Answer

The slope of the AE (Aggregate Expenditure) curve is typically determined by the marginal propensity to consume (MPC), which is often given as 0.8 in economic models.

Use the Table Below to Answer the Following Questions