Question 19The expenditure lineO is steeper than the 45-degree line.O slopes upward because consumption depends positively on income.O slopes upward because the MPC is less than 1.slopes upward because consumption and investment depend positively on income.O shows the relationship between consumption spending and income.DQuestion 20Between December 2007 and June 2009,the United States economy was in recession and millions of jobs were lost.the United States economy moved upward and millions of jobs were created.the United States economy grew, but not many jobs were created.the United States economy moved downward, but still many jobs were created.the United States economy remained stationary.

Expenditure line is flatter than a 45 degree line. this is because for every increase in disposable…

Answered: The expenditure line is steeper than…

The expenditure line is steeper than the 45-degree line. slopes upward because consumption depends positively on income. slopes upward because the MPC is less than 1.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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