Based on the assumptions of the aggregate expenditure model, the equilibrium level of aggregate expenditure in this economy is equal A) Actual aggregate income and output (GDP). B) potential income and output (full employment GDP) C) less than the aggregate income and output (GDP) D) more than the aggregate income and output (GDP)

Based on the assumptions of the aggregate expenditure model, the equilibrium level of aggregate expenditure in this economy is equal A) Actual aggregate income and output (GDP). B) potential income and output (full employment GDP) C) less than the aggregate income and output (GDP) D) more than the aggregate income and output (GDP)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 2TY

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Which of the following is true: a) at equilibrium aggregate expenditure is greater than gross domestic expenditure. b) at equilibrium GDP is greater than gross domestic expenditure. c) at equilibrium aggregate expenditure is smaller than gross domestic expenditure. d) at equilibrium GDP is smaller than gross domestic expenditure or e) at equilibrium both aggregate expenditure and GDP are smaller than gross domestic expenditure
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