The Aggregate Expenditure Line,along with the 45-Degree Line,determines Equilibrium

question 136

Multiple Choice

The aggregate expenditure line,along with the 45-degree line,determines equilibrium.This model is based on the assumption that

• A)production is constant
• B)production is constant and at the full employment level of GDP
• C)producers are ready to supply whatever amount of output is demanded at the existing price level
• D)producers will supply more at higher prices than they will at lower prices
• E)producers will supply more at lower prices than they will at higher prices

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Definitions:

Equipment

Equipment consists of the necessary tools, machinery, devices, or any tangible items required for the specific purpose of executing a task or activity.

Mortgage Insurance

An insurance policy designed to protect the lender from the risk of the borrower defaulting on a mortgage.

Mortgage Loan

A loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.

Down Payment

An initial, upfront payment made towards the purchase of a high-value item, like real estate or a vehicle, typically representing a percentage of the total purchase price.