Which of the following curve is graphically depicted by a 45° line passing through the origin ?
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : Aggregate supply curve
1 The 45-degree line is a line of reference and shows all those points where aggregate expenditure and output are equal.
2 It indicates that vertical axis measurement is equal to horizontal axis measurement.
3 A 45-degree line represents the aggregate supply curve drawn from the origin.
