When the Aggregate Expenditure Curve Is Above the 45 Degree

question 5

Multiple Choice

When the aggregate expenditure curve is above the 45 degree line:

• A) there will be excess demand in the economy and GDP will increase
• B) there will be insufficient demand in the economy and GDP will decrease
• C) there will be insufficient demand in the economy and GDP will increase
• D) there will be excess demand in the economy and GDP will decrease

---

Definitions:

Student Participation

The involvement of students in the learning process, often characterized by engagement in classroom discussions, activities, and decision-making.

Independent Variable

The experimental element that is manipulated to observe its effect on the dependent variable within scientific research.

Dependent Variable

In research, it's the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Manipulated

Refers to the controlled alteration or handling of variables in experiments to determine cause-and-effect relationships.