) The components of aggregate expenditure are consumption, investment, government expenditures and net export. The only component that varies with change in the level of real GDP is the consumption. The slope of the aggregate expenditure line is determined by the marginal propensity to consume.
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This looks like one of the questions off a work sheet or out of the proffessor's lecture; or out of a textbook for a college level business adm class. Didn't they cover these items in class, or in your text book ? If you were absent that day, ask one of your classmates if you can borrow his/ her notes .Or is this a take home test ? Or is this from a class on the internet ? If it's from an online class, ask the person who is supposed to be monitoring / helping all of you......to explain it to you.
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