In the Simple Aggregate Expenditure Model,the Slope of the Aggregate

question 73

Multiple Choice

In the simple aggregate expenditure model,the slope of the aggregate expenditure line depends on:

• A)interest rates.
• B)real gross domestic product.
• C)the price level.
• D)the marginal propensity to consume.
• E)the marginal propensity to save.

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Definitions:

Mixed Costs

Expenses that have both fixed and variable components, changing with the level of production but also incurring a base cost.

CVP Analysis

Cost-Volume-Profit Analysis, an accounting tool used to determine how changes in costs and volume affect a company's operating income and net income.

Variable

In finance and economics, a variable represents a quantity or factor that can change and influence outcomes, such as price, interest rates, or investments.

Fixed

Pertaining to assets, costs, or charges that do not vary with the level of production or sales in the short term.