When graphing aggregate demand and aggregate supply,
- What is the 45° line? If it's aggregate supply, that equals income, right? If so, then how does that differ from the income we measure across the horizontal axis.
- Does the vertical axis correspond to the the sum of all of expenditure? If so, how does that differ from aggregate demand?
Please, help!
- What is the 45° line? If it's aggregate supply, that equals income, right? If so, then how does that differ from the income we measure across the horizontal axis.
- Does the vertical axis correspond to the the sum of all of expenditure? If so, how does that differ from aggregate demand?
Please, help!