Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 11.1, Problem 1RQ
To determine

Identify the components of aggregate expenditure influenced by real GDP.

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Which components of aggregate expenditure do not directly depend on current income?
how will the different components of aggregate expenditure be affected by the increase in government spending? Analyse both the short run and the long run effect upon the components of aggregate expenditure.
If aggregate expenditure is greater than real GDP, we could expect which of the following to
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