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

question 22

Multiple Choice

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

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Definitions:

Positive

A term usually referring to values greater than zero, or a positive attitude or outcome in a broad sense.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of the outcomes.

Portfolio

A blend of financial contributions, featuring stocks, bonds, market commodities, ready money, and equivalents of cash, comprising also mutual funds and ETFs.

Stocks

Shares of ownership in a corporation or financial asset, which represent a claim on the company's earnings and assets.