The Aggregate Expenditure (AE) Curve

question 185

Multiple Choice

The aggregate expenditure (AE) curve

• A) includes expenditures by domestic residents only.
• B) includes expenditures on foreign as well as domestic goods.
• C) does not include expenditures on either imports or exports.
• D) includes all expenditures on domestic goods.
• E) adds expenditures on imports because they are consumed in the nation and subtracts expenditures on exports because they are consumed abroad.

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

"Similar To"

A phrase used to indicate that two or more things are alike in some manner or share common attributes.

Inductive Argument

A reasoning process that involves drawing general conclusions from specific observations or instances.

"Mostly Likely"

A phrase indicating that something is very probable or expected to happen based on available evidence.