Question

Which of the following is assumed constant along the aggregate expenditure line

Answer 1

The answer is price level.

It is a term that is used to describe the hypothetical measure on the daily basis of overall price as per the service and good.

This is the term that gives proper detailed form to the monetary or economic union over an interval to normalize the base set in a relative manner.

The price level is determined as per price index.

Answer 2

the medicinal and the health expenses are assumed to be constant along with aggregate expenditure line

Explanation:

• the expenditure is usually constant if there is no increase in the cost of the deviation shall food items or other expenditure. However all person become sick in certain point of time and as a result of this medicinal expenses are also important.
• As a result of this health insurance play a very important role in taking care of such uncalculated expenses