For all points above the 45 degree line,planned aggregate expenditure will be less than GDP.

Question

Quizplus · Accepted Answer

For all points above the 45 degree line, the planned aggregate expenditure will be greater than GDP. This is because the 45 degree line represents the point where GDP equals planned aggregate expenditure. Any point above the line represents a situation where planned aggregate expenditure is higher than the current level of GDP.

For All Points Above the 45 Degree Line,planned Aggregate Expenditure