Question

what is the significance of the 45 degree line in macroeconomics​

Answer 1

Answer:

The Axes of the Expenditure-Output Diagram

A vertical line shows potential GDP where full employment occurs. The 45-degree line shows all points where aggregate expenditures and output are equal. The aggregate expenditure schedule shows how total spending or aggregate expenditure increases as output or real GDP rises

Answer 2

Answer:

The Axes of the Expenditure-Output Diagram

A vertical line shows potential GDP where full employment occurs. The 45-degree line shows all points where aggregate expenditures and output are equal. The aggregate expenditure schedule shows how total spending or aggregate expenditure increases as output or real GDP rises.