Practicing Success
Which of the following curve is graphically depicted by a 45° line passing through the origin ? |
Consumption curve Investment curve Aggregate supply curve Aggregate Demand curve |
Aggregate supply curve |
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. |