The slope of the aggregate expenditure line equals


What does the slope of the aggregate expenditure line equal? How is the slope of the aggregate expenditure line related to th
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The slope of the aggregate expenditure line is that taxes, planned investment spending, gove the slope of the aggregate expen
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The slope of the aggregate expenditure line is The simple aggregate expenditure model assumes that taxes, planned investment
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The slope of the aggregate expenditure line is The simple aggregate expenditure model assumes that taxes, planned investment

Answer

The slope of the aggregate expenditure line is DeltaAE/DeltaReal GDP. The simple aggregate expenditure model assumes that taxes , planned investment spending , government purchases and net exports are independent of income i.e constant at all levels of income. So, The slope of the aggregate expenditure line is equals to the slope of the consumption function , which is the marginal propensity to consume.

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