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.