On the 45-Degree Line Diagram, for Points That Lie Above

question 149

Multiple Choice

On the 45-degree line diagram, for points that lie above the 45-degree line,

• A)planned aggregate expenditure is greater than GDP.
• B)planned aggregate expenditure is less than GDP.
• C)planned aggregate expenditure is equal to GDP.
• D)planned aggregate expenditure is less than aggregate income.
• E)planned aggregate expenditure is greater than potential GDP.

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Definitions:

Revenues

The total amount of money earned by a business from its normal business activities, before any expenses are subtracted.