We Can Use an Aggregate Expenditure Line to Show How

question 25

Multiple Choice

We can use an aggregate expenditure line to show how an aggregate demand curve shifts by

• A)shifting the 45-degree line
• B)letting changes in autonomous spending shift the aggregate expenditure line
• C)letting changes in the price level shift the aggregate expenditure line
• D)letting changes in the level of income shift the aggregate expenditure line
• E)letting changes in real GDP shift the aggregate expenditure line

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Definitions:

Independent Variable

In experimental and research settings, it is the variable that is manipulated or changed to observe its effects on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Measured Variable

A specific entity or characteristic that can be quantified or observed in a research study.

Dependent Variable

In an experiment, it's the variable being tested and measured, affected by manipulations of the independent variable.