The Aggregate Expenditure (AE)function Is an Upward- Sloping Curve That

question 8

Multiple Choice

The aggregate expenditure (AE) function is an upward- sloping curve that describes

• A)what firms and households would like to spend at each level of national income.
• B)what is actually spent at each level of national income.
• C)the amount spent on an economy's output at each national income.
• D)what is actually spent on an economy's output at each level of output.
• E)what an economy would like to spend, in the absence of income constraints, at each level of output.

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Definitions:

Household Members

Individuals who occupy the same residential unit and share living arrangements, which may or may not be related by blood or marriage.

Physical Custody

A legal term referring to with whom a child lives and the arrangements for taking care of the child's daily needs.

Father

A male parent or guardian of a child, contributing to the child’s care, upbringing, and genetic makeup.

Stepparent Family

A rephrased definition: A family configuration where children are raised by a biological parent and their new spouse, who is not the children's biological parent.