Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Which of the following curve is graphically depicted by a 45° line passing through the origin ?

Options:

Consumption curve

Investment curve

Aggregate supply curve

Aggregate Demand curve

Correct Answer:

Aggregate supply curve

Explanation:

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.