Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal to aggregate expenditure O B. GDP is greater than aggregate expenditure OC. Aggregate expenditure is constant OD. GDP is constant Aggregate Expenditure

Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal to aggregate expenditure O B. GDP is greater than aggregate expenditure OC. Aggregate expenditure is constant OD. GDP is constant Aggregate Expenditure

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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Question

Potential
GDP
Aggregate
expenditure
AE,
E,
45°
Y.
Real GDP (Y)
On the 45 degrees line:
GDP is equal to aggregate expenditure
O B.
GDP is greater than aggregate expenditure
OC.
Aggregate expenditure is constant
OD.
GDP is constant
Aggregate Expenditure

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