Skip to main content
Macroeconomics
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