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D Question 3 Which of the following is constant in the aggregate expenditure model? O Consumption Investment O Real GDP None of the above D Question 4 In the aggregate expenditure model the investment curve is O Upward sloping O Downward sloping O a horizontal line a vertical line D Question 5 Potential spenditure Aggregate Expenditure Real GDP (Y) On the 45 degrees line: O GDP is equal to aggregate expenditure O GDP is greater than aggregate expenditure O Aggregate expenditure is constant GDP is constant D Question 6 Potential Aggregate Aggregate Expenditure Real GDP () When real GDP is greater than Yo in the diagram above: O inventories will decrease O Aggregate expenditure will be greater than Real GDP O Aggregate expenditure will be equal to Real GDP O inventories will increase