The Aggregate Expenditure Line Is Drawn on a Graph That

question 128

Multiple Choice

The aggregate expenditure line is drawn on a graph that measures:

• A)real GDP on the horizontal axis and aggregate expenditure on the vertical axis.
• B)aggregate expenditure on the horizontal axis and real GDP on the vertical axis.
• C)consumption on the horizontal axis and aggregate expenditure on the vertical axis.
• D)aggregate expenditure on the horizontal axis and consumption on the vertical axis.
• E)investment on the horizontal axis and aggregate expenditure on the vertical axis.

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Definitions:

Compounded Monthly

The process of adding interest to the principal sum of a deposit or loan, with the effect that interest is then earned on the interest from the previous period.

Compounds Interest Continuously

A method of calculating interest where the interest earned is added to the principal so that the next interest calculation is on the sum of the principal plus previously earned interest.

Compounded Continuously

The process of calculating interest in which the earnings are reinvested and earn additional interest continuously over time.

Rule Of 72s

A shortcut to estimate the number of years required to double the invested money at a given annual rate of return.