Skip to main content
Macroeconomics
My Courses
College Courses
My Courses
Chemistry
General Chemistry
Organic Chemistry
Analytical Chemistry
GOB Chemistry
Biochemistry
Intro to Chemistry
Biology
General Biology
Microbiology
Anatomy & Physiology
Genetics
Cell Biology
Physics
Physics
Math
College Algebra
Trigonometry
Precalculus
Calculus
Business Calculus
Statistics
Business Statistics
Social Sciences
Psychology
Health Sciences
Personal Health
Nutrition
Business
Microeconomics
Macroeconomics
Financial Accounting
Calculators
AI Tools
Study Prep Blog
Study Prep Home
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
Back
AE Model: Private Closed Economy
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
AE Model: Private Closed Economy
Download worksheet
Practice
Summary
Previous
7 of 10
Next
16. Deriving the Aggregate Expenditures Model / AE Model: Private Closed Economy / Problem 7
Problem 7
Why is the 45-degree line important in the aggregate expenditures model?
A
It represents points where aggregate expenditures exceed GDP.
B
It represents points where aggregate expenditures equal GDP.
C
It represents points where consumption equals investment.
D
It represents points where GDP is zero.
AI tutor
0
Show Answer