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What does the slope of the aggregate expenditure line equal? How is the slope of the aggregate expenditure line related to the slope of the consumption function? The slope of the aggregate expenditure line is V The simple aggregate expenditure model assumes that taxes, planned investment spending, government purchases, and net exports So, the slope of the aggregate expenditure line the slope of the consumption function, which is the marginal propensity to consume.

The slope of the aggregate expenditure line is that taxes, planned investment spending, gove the slope of the aggregate expenditure line marginal propensity to consume. The simple aggregate expenditure model assumes net exports ANX of the consumption function, which is the AReal GDP AReal GDP ANX ΔΑΕ AReal GDP AIR AReal GDP AReal GDP AG AG AReal GDP AReal GDP AR AReal GDP ΔΑΕ

The slope of the aggregate expenditure line is The simple aggregate expenditure model assumes that taxes, planned investment spending, government purchases, and net exports so the slope of the aggregate expenditure line the slope of the consu marginal propensity to consume. are independent of income. rise as income rises. fall as income rises.

The slope of the aggregate expenditure line is The simple aggregate expenditure model assumes that taxes, planned investment spending, government purchases, and net exports So, the slope of the aggregate expenditure line the slope of the consumption function, which is the marginal propensity to consume. is greater than equals is less than

## Answer

The slope of the aggregate expenditure line is **AE/Real
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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